United Group Global Strategy. Richard Leupen, Managing Director and CEO 1 April 2008

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1 United Group Global Strategy Richard Leupen, Managing Director and CEO 1 April 2008

2 Agenda About United Group Operations excluding Australia/New Zealand Key Drivers Global Strategy Conclusion 2

3 About United Group A service company supporting essential infrastructure and resources Market capitalisation of over $2 billion, order book of $6.7 billion, revenue approaching $4 billion 40,000 people including sub-contractors Values of safety, integrity, outstanding customer service, teamwork and open communication Delivery Method Technology partners Alliance or cost plus contracts EPCM Global coverage PPPs Sectors Property Water Energy Transport Rail Resources Defence Geography Australia New Zealand Asia USA UK Customers Government Blue chip companies Services Corporate real estate Facilities management Project management Asset management Engineering design Manufacturing Construction 3

4 About United Group External ASX and ASIC Reporting Investors Media M&A Banks Government Human Resource Tax Management Risk Management Insurance Treasury Management Industrial Relations Legal Delegation of Authority Health Safety Security Environment Shared Services Strategic Marketing Payroll/HR IT/Website Procurement Physical Resourcing Encouraged to Share Offices/Workshop Labour Market Knowledge Projects 4

5 Operations ex Australia/New Zealand UGL Operates in Asia, North America and parts of Europe and Middle East 75% of UGL people now operate overseas Over $1 billion revenues outside of Australia & New Zealand Order book of $1.8 billion (of a total $6.7 billion) Services 16% Infrastructure 28% Resources 14% Rail 45% Infrastructure & Resources 55% Rail 42% Revenue 2002 $722.6m Revenue 2007 $2.56b 5

Why UGL is expanding globally Capacity constraints in Australia A market of 20 million people only Australia has full employment Developing external engineering capabilities Global supply chains

6 Why UGL is expanding globally Capacity constraints in Australia A market of 20 million people only Australia has full employment Developing external engineering capabilities Global supply chains Globalisation of economies Lower costs centres in countries like China and India Competitors and clients increasingly looking into these centres Australian passenger market is cyclical Follow clients and partners into international markets Working with GE Transportation in North China, Egypt, Kazakhstan Supporting property clients in international locations/population centres Business model is to act locally Use representative offices to source opportunities Use local contacts as leads into Government 6

International opportunities are significant Infrastructure spend in Asia East Asia requires US$1 trillion investment to upgrade basic infrastructure from 2005-2010 (source ADB) India eased foreign

7 International opportunities are significant Infrastructure spend in Asia East Asia requires US$1 trillion investment to upgrade basic infrastructure from (source ADB) India eased foreign investment rules Needs $320 billion to build new roads, ports and power systems Federal railway budget for FY09 includes proposed procurement of 20,000 wagons and 470 locomotives Thailand plans to spend $45 billion on railways, port and power grids Global property services to multi-national companies Global tenders in 2007 is 50 compared to 6 in 2002 Continuing trend to outsourcing as companies focus on core competencies Expanded scope and complexity of certification, regulatory and compliance requirements 7

UGL s global operations UGL Infrastructure Water projects in Singapore and Malaysia Sourcing material &

upgrade UGL Rail EMU maintenance in Hong Kong Supply and refurbishment of light rail vehicles in Hong Kong

Resources Reviewing supply chain from China Outsourcing steel detailing UGL Services Expansion in Asia,

8 UGL s global operations UGL Infrastructure Water projects in Singapore and Malaysia Sourcing material & fabricated products from India and China Current opportunities Water projects in India Singapore rail system upgrade UGL Rail EMU maintenance in Hong Kong Supply and refurbishment of light rail vehicles in Hong Kong Partner with GE Transportation in some international markets Feasibility study for a joint venture in India UGL Resources Reviewing supply chain from China Outsourcing steel detailing UGL Services Expansion in Asia, integrated approach in North America FM opportunities in the Middle East Expanding into FM in India Global opportunities Require Europe base 8

9 Global Reach Stockholm San Francisco Los Angeles San Diego Phoenix Denver Minneapolis Dallas Austin UGL Equis UGL Unicco Honolulu South Portland Milwaukee Detroit Newton Chicago Indianapolis Bloomfield Cleveland Boston East Hartford New York New Jersey St Louis Arlington Philadelphia Washington DC Cincinnati Centreville Richmond Charlotte Research Triangle Park Atlanta Edmonton Calgary Vancouver Toronto Etobicoke Mexico City Santiago St Laurent Ottawa New York Washington DC Brasilia Buenos Aires Glasgow Belfast Dublin London Paris Geneva Leeds The Hague Rome Lagos Berlin Malta Belgrade Cairo Pretoria Harare Nicosia Tel Aviv Qatar Riyadh Dubai Nairobi Beijing Tokyo Islamabad Kathmandu Shanghai New Delhi Guangzhou Dhaka Hanoi Hong Kong Mumbai Rangoon Bangalore Bangkok Vientanne Manilla Chennai Phnom Penh Colombo Kuala Pohnpei Lumpur Singapore Tarawa Vanimo Port Moresby Honiara Darwin UGL Infrastructure UGL Premas UGL Rail Perth Adelaide Melbourne Port Villa Nuku Alofa Brisbane Sydney Canberra Apia Suva Noumea Auckland Houston Tampa Miami Lakes Cities with main offices Cities with presence UNICCO Offices Hobart Wellington 9

10 Customers and Partners Property CRE Nokia AGFA National Australia Bank State of California Property FM Harvard University & Business School Department of Foreign Affairs and Trade Qatar Sports Facilities Jurong Township Rail MTR GE Transportation ALSTOM Texmaco Water & Energy Japanese Gas Corporation Singapore Public Utility Board Jyoti Balfour Beatty 10

1998 Started integrated service approach 2002 Developed one of Australia s leading property

11 Building a global property services business UGL s strategy has been to prove its model locally first: We have developed our integrated FM/CRE model in Australia first First acquisition in 1998 Started integrated service approach 2002 Developed one of Australia s leading property services business Acquisitions to enter Asian and North American markets

12 Why North American property services? Property services is becoming a global business North America is the headquarters for a large percentage of the world s multinational companies North America is the largest market for outsourced property services Our model delivers sustainable, long term growth Outsourcing of property services still in its infancy Margins are attractive We see an opportunity now to establish UGL as a global leader the window is open 12

13 The global property services landscape BPO Increasing strategic content End-to-end Operations UGL - End-to-end CRE / FM Solutions FM + delivery FM management agent Multiple Hard & Soft Services Single Services Increasing complexity of processes and systems 13

14 Conclusion Spend on essential infrastructure globally is significant Represents enormous opportunity for Australian companies that have the right strategy in the region Emergence of global property services market Global tenders are starting to emerge UGL is in a strong position with the right service model Competitive edge through efficient global supply chains We are building a sustainable, long-term business model through our global operations Underpinned by a growing order book of $6.7 billion and $4 billion of tendering opportunities 14

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