Shaping the future - a review of performance for 2021

Risk Why it’s important How we manage it Global Pandemic Strategic Priorities Customer, Performance, People The arrival of new variants or pathogens could lead to renewed travel or supply chain disruption, impacting delivery of customer or internal BMT projects. Market volatility, high debt levels, and competing demands on government budgets could impact the timing of investment decisions, while contract values may not grow in line with inflation. We adapt our ways of working to minimise the health risks to our employees and stakeholders while enabling us to deliver on projects. We carry out annual integrated strategic planning exercises that are stress tested for a range of outcomes across all our markets. We continually monitor our cost base and take active, immediate, and concerted efforts to protect cash reserves in response to business or market volatility. Strategy, Future Business & Brand Management Strategic Priorities Customer, Performance, People While we work across several geographies and industries, we are reliant on long-term relationships with several key customers and partners, (with a specific concentration on the UK market). The requirement to agree to customer T&Cs may expose the Company to unfavourable contractual terms or price caps. Failure to assess adequately the contractual, technical, and delivery risks at the bid stage could commit BMT to onerous contracts with potential for financial loss, legal claims, and material damage to our reputation and brand. Our key account managers work with our main customers to ensure we are the engineering delivery partner of choice and provide solutions aligned with their requirements and budgets. We invest in our people, in our business development strategies, and in our systems and processes to ensure we remain competitive and build a solid pipeline of profitable business across relevant sectors and markets. We have established bid and contract approval processes, with commercial, technical, financial, and legal oversight of potential risks and we work with our insurers to ensure our coverage is appropriate. Business Transformation - Change Management and Investment in Innovation Strategic Priorities Customer, Performance, People New technologies and industries trends change how our customers operate, and constant innovation is required to stay competitive and relevant. We are working through a significant business transformation and organisational change management programme that involves the development of global business services and project delivery functions. This is supported by the rollout of a global ERP system and a digitalisation strategy and targeted R&D investment. We manage transformation risks though a range of change management programme disciplines, close engagement with senior leadership and with our employees, and continuous monitoring and communication of the benefits. We seek to allocate the time and resources to minimise the risk to our day-to-day business. Through the oversight and governance by our senior leadership team we ensure our investment decisions are aligned with our strategy. We invest in innovation that will give us a competitive advantage and are working optimise the return from our existing product portfolio. We launched a digitalisation strategy to help drive efficiencies and sustain the skills necessary to support our customer. Programmes and Project Delivery Strategic Priorities Customer, Performance, People We contract and deliver to a wide range of customers across many geographies. Our reputation is core to who we are and how we operate, and we commit to get it right first time. The need to manage consistently and effectively a diverse project portfolio, requiring different capabilities, and with reliance on third parties occasionally, may impact our performance and could lead to contract losses and reputational damage. Project delivery is managed through the business and project lifecycle process with the application of relevant policies and procedures and management systems, reinforced by reviews. The transformation and organisational change management programme will enable us to optimise our delivery function, strengthen our technical assurance and drive consistent standards of project management across the Group. We have invested to ensure we deliver quality solutions, and we undertake customer satisfaction monitoring using the feedback to improve our performance. Managing Risk and Uncertainty continued BMT Group | Shaping our future 34