In addition to these changes, after many years as a Senior Executive for the Group, Juan Colombás, Executive Director and Chief Operating Officer, announced his plan to retire in July 2020. The Board is grateful to Juan for the major contribution he has made to the transformation of the Group. Anita Frew stepped down as Senior Independent Director in December and will also retire as Deputy Chairman and Non-Executive Director in May 2020, having served nine years on the Board. Anita has been an extremely valuable Board member and will be much missed. Alan Dickinson succeeded Anita as Senior Independent Director and will also take on the role of Deputy Chairman, bringing his significant Board, financial and regulatory experience to these roles.
FCA reportable complaints excluding PPI and claims management companies have significantly reduced over the last five years.
From a strategic perspective this indicates how much progress we are making in transforming ways of working.
In 2019, we surpassed more than 1 million hours saved through the use of robotics since the launch of our latest strategic plan in 2018, creating significant capacity for our colleagues to focus their time on delivering tangible improvements to our customer experience. These improvements are being delivered in the form of new features, such as the roll out of location based searches to improve the identification of fraudulent payments, as well as by making better use of data for the benefit of our customers, such as harnessing the insights from robotics to improve credit decisioning.
We also continue to invest in the resilience and security of our systems, ensuring that customer data remains safe despite the significant pace of change in technological trends.
Progress in 2019 We have continued to progress our technology enabled transformation during the course of the year, delivering better products and services that customers value and reducing time to market. We are also driving additional operational efficiencies across the organisation as we progressively modernise our IT and data architecture and improve processes. This has been underpinned by a continued commitment to invest significantly in technology.
Top quartile technology spend, equivalent to 19% of operating costs of the cost base covered by transformation
The Remuneration Committee has been mindful of the trend towards pay simplification across UK organisations. Shareholders have previously voiced that the Group’s current construct is overly complex. Our new proposed Remuneration Policy has been designed to deliver a simplified variable reward approach. In addition to wholesale change of some reward structures, such as the introduction of the Long Term Share Plan, the Committee also decided to maintain some existing components considered important parts of the overall package. We have agreed to maintain the existing Balanced Scorecard structure which is considered a transparent and effective tool to drive and assess performance. To provide further understanding for shareholders, an explanation alongside the Policy as to why the measures included in the scorecard provide good strategic alignment is provided within the Directors’ Remuneration Report. Long-term implications We believe the revised reward structure will incentivise long-term stewardship and promote good governance through a simple alignment with shareholders. Reductions in fixed pay and potential variable reward payouts will support reducing the gap between colleague and executive remuneration.
This year, we also built on our financial commitments, broadening our support for a range of issues that impact businesses every day. For example, we are giving SMEs access to information and support on mental health so that they can manage it more effectively, and we are proud to be the first financial partner of Be the Business, which offers funding, research and tools to help UK businesses measure and increase their productivity.
Transforming ways of working Completed rollout of the SME Business Lending Tool, freeing up relationship manager time for increased client engagement, and new auto-credit decisioning capability with around 25 per cent of SME annual renewals now automated
Governance is maintained through delegation of authority from the Board down to individuals through the management hierarchy. Senior executives are supported by a committee based structure which is designed to ensure open challenge and enable effective decision-making.
Chairman’s Letter This Corporate Governance Report details our approach to governance in practice, how the Board operates and the key activities of the Board during the year, together with information on the annual Board evaluation process. It also includes the reports from each of the Board’s principal Committees.
4. Simon Henry Independent Director Appointed: June 2014 Skills, experience and contribution: Deep international experience in board level strategy and execution Extensive knowledge of financial markets, treasury and risk management
7. Amanda Mackenzie OBE Independent Director Appointed: October 2018 Skills, experience and contribution: Extensive experience in responsible business Considerable customer engagement experience Strong digital technology experience Significant marketing and brand background Amanda was a member of Aviva’s Group Executive for seven years and Chief Marketing and Communications Officer. Prior to her current role, Amanda was seconded from Aviva as Executive Adviser to Project Everyone, to help launch the United Nations Sustainable Development Goals. She has over 25 years’ of commercial business practice, including director roles at British Airways AirMiles, BT, Hewlett Packard Inc, British Gas and as a Non-Executive Director of Mothercare plc. Amanda is a Life Fellow of the Royal Society of Arts and Fellow and past President of the Marketing Society. External appointments: Chief Executive of Business in the Community – The Prince’s Responsible Business Network.
3. Kate Cheetham Group General Counsel and Company Secretary Appointed: July 2017 (GEC attendee) Skills and experience: Kate was appointed Group General Counsel in January 2015 and Group Company Secretary in July 2019.
2 Alan Dickinson succeeded Anita Frew as Senior Independent Director on 1 December 2019.
Reviewed and approved Group treasury plan 2020 Link to stakeholder groups: Regulatory and Government
Considered Board, Board Committee and Executive succession plans Link to stakeholder groups: Colleagues; Shareholders
Agreement and the UK’s commitment to a net zero future by 2050. From our position at the heart of the UK economy, we are committed to supporting the UK successfully to engage with the challenges and opportunities presented by climate change and the carbon economy. We have identified and will manage material sustainability related risks across the Group, disclosing these in line with the Task Force on Climate-related Financial Disclosures (TCFD) recommendations. We have created a detailed implementation plan for the TCFD and the PRA supervisory expectations related to climate change. We have appointed Senior Management Function positions responsible for Climate Change risk, covering the three main legal entities, for example, for Lloyds Bank and Bank of Scotland this is the Chief Risk Officer.
In your opinion, what makes an effective Remuneration Committee to support the Board? Our role is to ask the right questions, get comfortable we have engaged with the right stakeholders and listened to them properly to give the Board assurance that the proposals we put forward are right for the Group. Composition of the Committee is important and we have a mix of male and female Non-Executive Directors with a wealth of financial and non-financial, executive and non-executive experience to bring to the table. Importantly, all Committee members also have a good understanding of what factors, both internal and external, have an impact on remuneration.
Equity sub-group under LBG Equity Investments Limited, for which the principal subsidiary is Lloyds Development Capital Limited
1 At the time of the 2018 review EgonZehnder provided certain Board and senior management level services from time to time, including in respect of succession planning as detailed on page 67 of the 2018 Annual Report and Accounts, otherwise EgonZehnder had no other connection with the Group.
Size of Board Ensure size of Board and large attendance at Committee meetings does not inhibit debate
After the branch and charity visits, Lord Blackwell moved to Brindley Place where he hosted a recognition lunch for around 20 colleagues from Group Client Information Office and Commercial, discussing their successes and also what challenges they might be facing. He then spent time with teams from within those divisions and heard about work to investigate suspicious activity reports raised from branches, the cash management and payments model office, the automation journey for payments, including demonstrations of robotics and also how the Group is supporting business clients through their trade journey.
The Group’s risk management and internal control systems are regularly reviewed by the Board and are consistent with the Guidance on Risk Management, Internal Control and Related Financial and Business Reporting issued by the Financial Reporting Council and compliant with the requirements of CRD IV. They have been in place for the year under review and up to the date of the approval of the annual report. The Group has determined a pathway to compliance with BCBS 239 risk data aggregation and risk reporting requirements and continues to actively manage enhancements.
Lloyds Banking Group Annual Report and Accounts 2019 81 Lloyds Banking Group Annual Report and Accounts 2019 81 Strateg ic rep ort
G. The balance of skills, experience, independence and knowledge on the Board is the responsibility of the Nomination and Governance Committee, and is reviewed annually or whenever appointments are considered. Having the right balance of skills and experience helps to ensure Directors discharge their duties effectively. The Nomination and Governance Committee monitors whether there are any relationships or circumstances which may affect a Director’s independence. Following the most recent review of independence, the Committee concluded that all Non-Executive Directors are independent in character and judgement, as shown on page 82. As of 1 December 2019, Anita Frew had spent 9 years on the Board and will retire at the AGM in May. In relation to the period from 1 December 2019, being the ninth anniversary of Anita’s appointment to the Board, to her retirement at the AGM in May, the Board considered and agreed that the period beyond nine years as a director did not impact on Anita’s level of independence or the effectiveness of her contributions and her continuing treatment as an independent Non-Executive Director of the Company for that period. The decision was based on a number of factors including consideration of Anita’s interests outside the Group and the continued challenge and oversight Anita provides in the role, whilst noting the benefits of enabling the phased transition of responsibilities to other Non-Executive Directors during this short period. More information on the annual Board effectiveness review can be found on pages 77 to 78 and information on the Board Diversity Policy can be found on page 83.
Committee purpose and responsibilities The purpose of the Committee is to keep the Board’s governance, composition, skills, experience, knowledge, independence and succession arrangements under review and to make appropriate recommendations to the Board to ensure the Company’s arrangements are consistent with the highest corporate governance standards.
Succession Planning Effective succession planning contributes to the delivery of the Group’s strategy by ensuring the desired mix of skills and experience of Board members now and in the future. The Board is also committed to recognising and nurturing talent within the executive and management levels across the Group to ensure the Group creates opportunities to develop current and future leaders.
Lloyds Banking Group Annual Report and Accounts 2019 85 Lloyds Banking Group Annual Report and Accounts 2019 85 Strateg ic rep ort
The Committee has delivered on its key responsibilities, ensuring oversight of financial reporting and the control environment. Simon Henry Chairman, Audit Committee
The Committee also expects to review ongoing developments in the Group’s approach to climate change reporting, as this area continues to develop. The Committee will also consider the developments in Corporate Governance, external audit practice, and regulation of this industry, arising from reviews by Sir Donald Brydon and others. The Committee has already given initial consideration to the matters these reviews have raised, and will continue to contribute to the ongoing consultation processes.
The Committee was also satisfied that the Group’s disclosures made in respect of retirement benefit obligations are appropriate. The relevant disclosures are set out in note 36: ‘Retirement benefit obligations’ of the financial statements. The defined benefit obligation at 31 December 2019 was £45,241 million (31 December 2018: £41,092 million).
The Committee reviewed management’s assessment that the quality of the PIRs received in the period leading up to the deadline was low, with about one in ten PIRs leading to a valid claim, and its calculation that an additional provision of £1,800 million was required in the third quarter. At the year end, the Committee reviewed management’s assessment that, based on actual experience in the fourth quarter of 2019, no further provision was required.
Auditor independence and remuneration Both the Board and the external auditor have policies and procedures designed to protect the independence and objectivity of the external auditor. The Committee has received confirmation from Deloitte, the incoming auditor from 2021, that it is independent of the Group as at 1 January 2020. This will permit Deloitte to commence audit planning activities in the first half of 2020. In January 2020, the Committee amended its non-audit service policy to reflect revisions made by the Financial Reporting Council to its rules and to require Deloitte to comply with the policy. The main change related to due diligence services, which can no longer be provided to the Group by either PwC or Deloitte. In addition to detailing those services that the Committee prohibits the external auditor from providing to the Group, the policy preapproves certain services provided the fee is below a threshold; all other permitted services must be specifically approved in advance by the Committee.
Committee purpose and operation The Committee supports the Board in overseeing the Group’s performance as a Responsible Business by providing oversight of, and support for, the Group’s strategy and plans for embedding responsible business as part of the Group’s purpose to Help Britain Prosper. This Committee provides oversight and challenge on activities which impact the Group’s trust and reputation and by considering and recommending to the Board for approval the Responsible Business Report and Helping Britain Prosper Plan.
Our market based emissions figure is equal to 101,042 tCO2e – a comparative decrease of 12.9 per cent year on year and 82.0 per cent decrease against 2009 baseline. Further reductions in market emissions are attributable to the purchase of renewable energy certificates for each of our operations outside of the UK equivalent to their consumption since January 2019. We continue to source solar, wind hydro and biomass Renewable Energy Guarantees of Origin (REGOs) equivalent to our total UK electricity consumption.
– Delivered in shares. – Five year delivery with 20 per cent each year.
Has the bank lived up to its ambition to be the Best Bank for Customers?
Shares will vest on a pro–rata basis up to the seventh anniversary of the award grant and each set of vested shares will be subject to a further holding period. Further details on deferral and holding can be found on pages 110 to 111.
Individual awards will be based on pre-determined formulaic pay out ranges commensurate with performance and will be determined by the Remuneration Committee through the assessment of a balanced scorecard and an individual performance assessment. The Committee will determine if an Executive Director’s personal performance justifies a variation up or down in the rating or award values determined by the scorecard, and will explain how this is determined. The Group Chief Executive’s individual performance will be measured through the Group Balanced Scorecard, the Chief Operating Officer will be measured through the Chief Operating Office scorecard and the Chief Financial Officer will be measured through the Finance Division scorecard.
Awards in 2020 are being made as follows: GCE: 250 per cent of base salary COO: No award CFO: 237.5 per cent of base salary
The average share price between 1 October 2019 and 31 December 2019 (59.34 pence) has been used to indicate the value of vesting Group Ownership Share awards
Group’s strategic priorities. Base salary reflects the role of the individual, taking account of market competitiveness, responsibilities and experience, and pay in the Group as a whole.
Maximum potential The Committee will make no increase which it believes is inconsistent with the two parameters above. Increases will normally be in line with the increase awarded to the overall employee population. However, a greater salary increase may be appropriate in certain circumstances, such as a new appointment made on a salary below a market competitive level, where phased increases are planned, or where there has been an increase in the responsibilities of an individual. Where increases are awarded in excess of the wider employee population, the Committee will provide an explanation in the relevant annual report on remuneration.
Operation From 2021, awards will be granted under the rules of the 2020 Long-Term Share Plan, subject to shareholder approval at the AGM on 21 May 2020. Awards are made in the form of conditional shares and award levels are set at the time of grant, in compliance with regulatory requirements, and may be subject to a discount in determining total variable remuneration under the rules set by the European Banking Authority. The number of shares to be awarded may be calculated using a fair value or based on a discount to market value, as appropriate.
Where qualitative performance measures or underpins are used and performance against those measures or underpins is not commensurate with the Group’s overall financial or strategic performance over the performance period
Base salaries are reviewed annually, taking into account individual performance and market information. Further information on base salaries can be found on page 115 of the DRP.
– Agility will be increased by consolidating platforms and building new architecture aligned with customer journeys.
Group Market Risk Committee Reviews and recommends market risk appetites. Monitors and oversees market risk exposures across the Group and adherence to Board risk appetite. Approves the framework and designation of books between the Trading Book and the Banking Book for regulatory purposes.
Identification and effective mitigation of data risk when planning and implementing transformation or business change
Mitigating actions to the principal operational resilience risk are: Cyber: the threat landscape associated with cyber risk continues to evolve and there is significant regulatory attention on this subject. The Board continues to invest heavily to protect the Group from cyberattacks. Investment continues to focus on improving the Group’s approach to identity and access management, improving capability to detect and respond to cyber-attacks and improved ability to manage vulnerabilities across the estate
Buy-to-let mortgages within Retail are limited to a maximum loan size of £1,000,000 and 75 per cent LTV. Buy-to-let applications must pass a minimum rental cover ratio of 125 per cent under stressed interest rates, after applicable tax liabilities. Portfolio landlords (customers with four or more mortgaged buy-to-let properties) are subject to additional controls including evaluation of overall portfolio resilience.
Models The performance of all models used in credit risk is monitored in line with the Group’s model governance framework – see model risk on page 187.
Expected credit loss allowances (drawn and undrawn) as a percentage of gross lending (%)2 0.9 0.2 4.1 24.3 1 These balances exclude the impact of the HBOS and MBNA acquisition related adjustments.
Portfolios remain well positioned and are subject to ongoing risk mitigation actions as appropriate. Monitoring indicates no material deterioration in the credit quality of the portfolio
3 Predominantly Investment grade corporate CRE lending where the Group is relying on the corporate covenant.
The Group continues to optimise its approach to IT by investing in technology improvements; focusing on simplification of IT architecture; and decommissioning legacy systems in order to maintain reliable banking services for its customers. IT risk mitigation programmes are in place to continually improve customers’ experience, which receive considerable time and focus at Board and Board Risk Committees
The Group’s credit ratings continue to reflect its robust balance sheet, resilient underlying profitability and bail-in capital position. There were no changes to the ratings over 2019, although in November, Moody’s revised the Group’s and Lloyds Bank plc’s outlooks to negative due to concern relating to the UK’s exit from the European Union. In March Fitch placed the majority of UK banks, including the Group’s entities, on Ratings Watch Negative before stabilising the ratings in December given the reduced risk of a no-deal exit from the EU.
Debt securities in issue: 1 The Group’s definition of wholesale funding aligns with that used by other international market participants; including interbank deposits, debt securities and subordinated liabilities.
This scenario includes a two notch downgrade of the Group’s current longterm debt rating and accompanying one notch short-term downgrade implemented instantaneously by all major rating agencies.
Financial assets at fair value through other comprehensive income – – 7,617 7,617 – 16,919 – 556 17,475 25,092
Interest rate risk Yield curve risk in the Group’s divisional portfolios, and in the Group’s capital and funding activities arises from the different repricing characteristics of the Group’s non-trading assets, liabilities (see loans and advances to customers and customer deposits in table 1.54) and offbalance sheet positions.
We understood and tested key controls relating to the governance and processes for setting actuarial assumptions.
Appointment Following the recommendation of the Audit Committee, we were appointed by the directors on 25 December 1995 to audit the financial statements for the year ended 31 December 1995 and subsequent financial periods. The period of total uninterrupted engagement is 25 years, covering the years ended 31 December 1995 to 31 December 2019. The audit was tendered in 2014 and we were re-appointed with effect from 1 January 2016. There will be a mandatory rotation for the 2021 audit and we will cease to be auditor of the Group.
Movements in revaluation reserve in respect of available for sale financial assets: Change in fair value 303
Movements in cash flow hedging reserve, net of tax – 453 – 453 – – 453
Structured entities are entities that are designed so that their activities are not governed by way of voting rights. In assessing whether the Group has power over such entities in which it has an interest, the Group considers factors such as the purpose and design of the entity; its practical ability to direct the relevant activities of the entity; the nature of the relationship with the entity; and the size of its exposure to the variability of returns of the entity.
Revenue recognition policies specific to trading income are set out in E(3) below, life insurance and general insurance business are detailed below (see (M) below) ; those relating to leases are set out in (J) (1) below.
(1) Financial instruments measured at amortised cost Financial assets that are held to collect contractual cash flows where those cash flows represent solely payments of principal and interest are measured at amortised cost. A basic lending arrangement results in contractual cash flows that are solely payments of principal and interest on the principal amount outstanding. Where the contractual cash flows introduce exposure to risks or volatility unrelated to a basic lending arrangement such as changes in equity prices or commodity prices, the payments do not comprise solely principal and interest. Financial assets measured at amortised cost are predominantly loans and advances to customers and banks together with certain debt securities used by the Group to manage its liquidity. Loans and advances are initially recognised when cash is advanced to the borrower at fair value inclusive of transaction costs. Interest income is accounted for using the effective interest method (see (D) above) .
Scheme assets are included at their fair value and scheme liabilities are measured on an actuarial basis using the projected unit credit method. The defined benefit scheme liabilities are discounted using rates equivalent to the market yields at the balance sheet date on high-quality corporate bonds that are denominated in the currency in which the benefits will be paid, and that have terms to maturity approximating to the terms of the related pension liability. The Group’s income statement charge includes the current service cost of providing pension benefits, past service costs, net interest expense (income) , and plan administration costs that are not deducted from the return on plan assets. Past service costs, which represents the change in the present value of the defined benefit obligation resulting from a plan amendment or curtailment, are recognised when the plan amendment or curtailment occurs. Net interest expense (income) is calculated by applying the discount rate at the beginning of the period to the net defined benefit liability or asset.
The Group’s balance sheet includes the net surplus or deficit, being the difference between the fair value of scheme assets and the discounted value of scheme liabilities at the balance sheet date. Surpluses are only recognised to the extent that they are recoverable through reduced contributions in the future or through refunds from the schemes. In assessing whether a surplus is recoverable, the Group considers its current right to obtain a refund or a reduction in future contributions and does not anticipate any future acts by other parties that could change the amount of the surplus that may ultimately be recovered.
O ther inform ation Lloyds Banking Group Annual Report and Accounts 2019 219
1 In the year ended 31 December 2019 this comprises the effects of asset sales (gains of £214 million) ; volatility and other items (losses of £88 million) ; the amortisation of purchased intangibles (£68 million) ; restructuring (£471 million, comprising severance related costs, the integration of Zurich’s UK workplace pensions and savings business and costs associated with establishing the Schroders Personal Wealth joint venture) ; and the fair value unwind and other items (losses of £275 million) .
During the year, the auditors also earned fees payable by entities outside the consolidated Lloyds Banking Group in respect of the following: 2019 £m 2018 £m 2017 £m
O ther inform ation Lloyds Banking Group Annual Report and Accounts 2019 245
Financial liabilities at fair value through profit or loss 21,486 30,547
Note 35: Other liabilities continued The maturity of the Group's lease liabilities was as follows: 2019 £m 2018 £m
(Charge) credit to other comprehensive income – – (25) 113 141 – 229
In addition, no deferred tax asset is recognised in respect of unrelieved foreign tax credits of £46 million (2018: £46 million) , as there are no expected future taxable profits against which the credits can be utilised. These credits can be carried forward indefinitely.
Other movements (all non-cash) 114 152 18 541 825 1 The repurchases and redemptions resulted in cash outflows of £818 million (2018: £2,256 million) .
Preferred securities £m 13% Step-up Perpetual Capital Securities callable 2019 49
O ther inform ation Lloyds Banking Group Annual Report and Accounts 2019 273
Total financial assets carried at fair value, excluding derivatives 125,884 44,081 15,316 185,281
At 31 December 2019, the own credit adjustment arising from the fair valuation of £7,531 million (2018: £7,085 million) of the Group’s debt securities in issue designated at fair value through profit or loss resulted in a loss of £419 million (2018: gain of £533 million) , before tax, recognised in other comprehensive income.
(B) Concentrations of exposure The Group’s management of concentration risk includes single name, industry sector and country limits as well as controls over the Group’s overall exposure to certain products. Further information on the Group’s management of this risk is included within Credit risk mitigation, Risk management on page 142.
Net cash provided by (used in) operating activities (8,997) 6,689 8,221
Lloyds Banking Group may also make or disclose written and/or oral forward looking statements in reports filed with or furnished to the US Securities and Exchange Commission, Lloyds Banking Group annual reviews, half-year announcements, proxy statements, offering circulars, prospectuses, press releases and other written materials and in oral statements made by the directors, officers or employees of Lloyds Banking Group to third parties, including financial analysts.
Lloyds Bank Asset Finance Ltd 1 Lloyds Bank Commercial Finance Ltd 9 Lloyds Bank Commercial Finance Scotland Ltd 43 Lloyds Bank Corporate Asset Finance (HP) Ltd 1 Lloyds Bank Corporate Asset Finance (No.1) Ltd 1 Lloyds Bank Corporate Asset Finance (No.2) Ltd 1 Lloyds Bank Corporate Asset Finance (No.3) Ltd 1 Lloyds Bank Corporate Asset Finance (No.4) Ltd 1 Lloyds Bank Corporate Markets plc 1 ̂ Lloyds Bank Corporate Markets
Lloyds Engine Capital (No.1) U.S LLC 11 * Lloyds Far East S.A.R.L. 56 Lloyds General Leasing Ltd 1 Lloyds Group Holdings (Jersey) Ltd 58 i ii vii Lloyds Holdings (Jersey) Ltd 58 Lloyds Hypotheken B.V. 55 Lloyds Industrial Leasing Ltd 1 Lloyds International Pty Ltd 8 Lloyds Investment Bonds Ltd (In liquidation) 13 Lloyds Investment Fund Managers Ltd 58 Lloyds Investment Securities No.5 Ltd 1 Lloyds Leasing (North Sea Transport) Ltd 1 Lloyds Leasing Developments Ltd 1 Lloyds Nominees (Guernsey) Ltd 37 Lloyds Offshore Global Services Private Ltd 48 Lloyds Plant Leasing Ltd 1 Lloyds Portfolio Leasing Ltd 1 Lloyds Premises Investments Ltd (In liquidation) 13 Lloyds Project Leasing Ltd 1 Lloyds Property Investment Company No. 3 Ltd
Scottish Widows Schroder Personal Wealth Ltd 1 Scottish Widows Schroder Wealth Holdings Ltd 1 i ii # Scottish Widows Services Ltd 3 Scottish Widows Trustees Ltd 54 Scottish Widows Unit Funds Ltd 3 Scottish Widows Unit Trust Managers Ltd 45 Seabreeze Leasing Ltd 1 Seaspirit Leasing Ltd 1 Share Dealing Nominees Ltd 4 Shogun Finance Ltd 7 i ii # Silentdale Ltd (In liquidation) 13 iv vi St Andrew’s Group Ltd 20
The Yard Dodd Lane, Westhoughton, Bolton, Bl5 3NU ix xiv & Ensco 1314 Ltd 99% 90 Tottenham Court Road, London W1T 4TJ i & Ensco 1320 Ltd 99% One Eleven, Edmund Street, Birmingham B3 2HJ i & Ensco 1322 Ltd 99% Newbury House, 20 Kings Road West, Newbury, Berkshire, RG14 5XR i & Ensco 1327 Ltd 99% One Eleven, Edmund Street, Birmingham B3 2HJ i & Ensco 1337 Ltd 99% Cotton Tree Lane, Colne, BB8 7BH i & Ensek Holdings Ltd 89.25% The Watercourt, 116-118 Canal Street, Nottingham, NG1 7HF xvii & Erris Homes (Almondbury) Ltd 50% Unit 11 Acorn Business Park, Killingbeck Drive, Leeds, LS14 6UF, United Kingdom i Escapade Bidco Ltd 99%
Senningerberg, Luxembourg (27) 50 Stratton Street, London, W1J 8LL (28) 70 Sir John Rogersons Quay, Dublin 2, Ireland * The undertaking does not have share capital + The undertaking does not have a registered office # In relation to Subsidiary Undertakings, an undertaking external to the Group holds shares