AGENDA. 1. Introductory Comments. 2. Group Financial Results. 3. Business Performance. 4. Initial Impressions

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2 AGENDA 1. Introductory Comments 2. Group Financial Results 3. Business Performance 4. Initial Impressions 2

3 STRONG FUNDAMENTALS, SIGNIFICANT CHANGE, REAL OPPORTUNITY Strong fundamentals - Safety is solid and improving - Improved trading performance PBTA of 53.9m (2016: 50.7m) - Strong cash generation cash conversion of 91% - Committed facilities in place with headroom - Leverage improving to 1.3x and now within target range Significant change - New CEO after 30 years - Comprehensive board renewal - Recognised energy impairment of 40m Real opportunity - Investment in people, brand and connectivity will improve organic growth - Acquisition opportunities remain in rapidly consolidating industry - Energy has limited downside and significant optionality 3

4 AGENDA 1. Introductory Comments 2. Group Financial Results 3. Business Performance 4. Initial Impressions 4

5 IMPROVED TRADING PERFORMANCE ccy ¹ Revenue ( m) Fees ( m) Operating profit ² ( m) Operating profit margin ² (%) 10.4% 10.5% 10.4% PBTA ( m) Basic eps (p) ³ Dividend per share (p) Tax rate on PBTA (%) ¹ 2016 results restated at 2017 currency rates ² pre amortisation and impairment of acquired intangibles and transaction related costs ("A") ³ pre A and tax on A 5

6 GOODWILL IMPAIRMENT 40M LEADS TO STATUTORY LOSS BEFORE TAX m Operating Profit Amortisation and impairment Operating Profit pre A Finance costs (4.5) (5.2) PBTA Amortisation and impairment (55.5) (17.9) (Loss) / profit before tax (1.6) 32.8 ¹Amortisation and impairment of intangible assets and transaction related costs 6

7 RESULTS INCLUDE Amortisation and impairment includes - Energy goodwill impairment 40.0m (2016: nil) - Loss on disposal of Canadian pipeline approval business 2.7m (2016: nil) Segment profit 67.0m (2016: 62.6m) including - Reorganisation costs 1.2m (2016: 5.6m) - Energy provisions reversed 1.8m (2016: 4.2m) Unallocated expenses 8.5m (2016: 6.7m), due to board changes 7

8 STRONG CONVERSION OF PROFIT INTO CASH BENEFITED FROM UNWINDING OF WC m EBITDAS Working capital (6.1) 11.5 Cash from operations Conversion of profit into cash 91% 117% Interest (4.8) (4.9) Tax (14.9) (11.1) Net cash from operating activities EBITDAS is earnings before interest, tax, depreciation, amortisation and share scheme cost. 8

9 HISTORICALLY STRONG CASH CONVERSION 160% 140% 120% 100% 80% 60% H1 H2 full year 40% 20% 0%

10 GOOD FREE CASH FLOW, REDUCED ACQUISITION CONSIDERATION OUTFLOW m Net cash from opg activities Capex (8.2) (7.9) Free cash flow Initial consideration ¹ - (6.6) Deferred consideration (12.9) (23.7) Dividends (22.0) (22.5) Other 0.4 (0.1) Cash flow ¹ net of cash acquired 10

11 REDUCED BORROWINGS m Net bank borrowings 31/12 (83.4) (78.8) Cash flow Acquisition debt - (4.9) Fair value adjustment (0.4) 1.0 FX 2.1 (2.4) Net bank borrowings 31/12 (80.6) (83.4) Deferred consideration 31/12 (15.0) (30.3) New acquisitions - (3.0) Consideration payment FX 0.3 (5.4) Deferred consideration 31/12 (1.8) (15.0) 11

12 COMMITTED BANK FACILITIES IN PLACE 250M Committed facility expiry 200M 150M 100M Current utilisation HSBC Lloyds Pricoa 50M

13 BORROWINGS WELL CONTROLLED, EBITDAS IMPROVED SINCE M EBITDAS and borrowings history 120M 100M 80M 60M Annualised EBITDAS Total borrowings 40M 20M 0M 2013 H H H H H H H H H H2 13

14 IMPROVING LEVERAGE SINCE H x 2.5x 2.0x 1.5x 1.0x 0.5x Leverage at Dec x (Dec x) Bank leverage limit 0.0x 2013 H H H H H H H H H H2 Leverage is total borrowings / annualised EBITDAS 14

15 ACQUISITIONS SLOWED, MODEST GROUP ORGANIC GROWTH No new acquisitions in 2017 (2016: DBK) Group organic growth at constant currency Fees Profit 1 Built and Natural Environment: Europe 3.6% 4.9% Built and Natural Environment: North America 12.2% 0.4% Energy (8.9%) 18.4% Australia Asia Pacific (2.7%) 1.1% Group 1.3% 2.0% 1 Profit is segment profit for each segment and operating profit before amortisation and impairment of acquired intangibles and transaction related costs for the Group 15

16 CAPITAL ALLOCATION PRIORITIES Investment in people, brand and connectivity will be required to build and maintain organic growth Value can be created by playing a selective role in industry consolidation RPS has a long history of generally accretive acquisition Leverage (Net Debt to EBITDA) should be under 2.0x Acquisition pipeline is being rebuilt Intent to hold the dividend and to grow profit to reduce the payout ratio in line with previous norm 16

17 INCREASED PAYOUT RATIO SINCE 2015 Payout ratio history 25 70% EPS / Dividend per share (p) % 50% 40% 30% 20% 10% Payout Ratio Year 0% EPS Dividend Payout ratio 17

18 AGENDA 1. Introductory Comments 2. Group Financial Results 3. Business Performance 4. Initial Impressions 18

19 GOOD TRADING IN EACH SEGMENT m cc 1 Built and Natural Environment: Europe Built and Natural Environment: North America Energy Australia Asia Pacific Segment profit Unallocated expenses (8.5) (6.7) (6.7) Operating profit Interest (4.5) (5.2) (5.3) PBTA ¹ 2016 results restated at 2017 currency rates 2 Pre amortisation and impairment of acquired intangibles and transaction related costs 19

20 RESILIENCE DESPITE FALL IN ENERGY Segment profit 90M 80M 70M 60M 50M 40M 30M 20M 10M Australia Asia Pacific Built and Natural Environment: North America Built and Natural Environment: Europe Energy

21 REDUCING CAPACITY, MAINTAINING CAPABILITY Energy Headcount and Fees Flexible Workforce in Energy 200M 180M 160M 140M 1, Associate-based model for much of the Energy business Quick reduction in capacity in response to 120M 600 weakening market 100M 500 FTE associates reduced from c.800 in 80M to c.250 in M 40M 20M M 31 Dec Dec Dec Dec Dec Potential for rapid expansion when market conditions allow relationships with key associates maintained Fees (LHS) Headcount (RHS) 21

22 SAFETY BENCHMARKS SOLIDLY AGAINST PEERS - RESULTS SHOW POSITIVE TREND RIDOR reportable injury frequency rate RIDOR reportable injury frequency rate RPS Construction Manufacturing Professional, Scientific and Technical Activities Injury Frequency Rate(IFR)(per 1,000,000 hours worked) Injury Frequency Rate(IFR) RIDOR - Reporting of Injuries, Diseases and Dangerous Occurrences Regulations 22

23 BUILT AND NATURAL ENVIRONMENT: EUROPE Fee and profit growth ccy ¹ Fee income ( m) Segment profit ( m)² Margin (%) 12.9% 13.1% 13.0% ¹ 2016 results restated at 2017 currency rates ² After reorganisation costs of nil in 17, 0.5m in 16 23

24 BUILT AND NATURAL ENVIRONMENT: EUROPE H2 profit down due to Norway integration and project loss m H2 H1 H2 H1 Fees Underlying profit Reorganisation costs - - (0.1) (0.4) Segment profit Margin 12.5% 13.3% 13.6% 12.5% 24

25 BUILT AND NATURAL ENVIRONMENT: EUROPE Favourable market conditions 2017 Very good performance in UK water business, in the historically-strong mid- Asset Management Plan regulatory period, although H2 fees declined Planning and Development business in UK and Ireland benefited from client confidence in private and public sectors Loss on troubled engineering design project 2.1m, fully provided Other operationally focussed businesses, the Netherlands and HSR (Health Safety & Risk) performed well Our Norwegian businesses integrated at year end, but this negatively affected H2 performance Prospects Good market conditions, although we anticipate some slowdown in UK water; integration effects may continue in Norway in H1; capable of growth 25

26 BUILT AND NATURAL ENVIRONMENT: NORTH AMERICA Fee growth, following Hurricane Harvey impact, energy decline and higher shared services ccy ¹ Fee income ( m) Segment profit ( m)² Margin (%) 10.9% 12.0% 12.2% ¹ 2016 results restated at 2017 currency rates ² After reorganisation costs of 0.2m in 17, 0.3m in 16 26

27 BUILT AND NATURAL ENVIRONMENT: NORTH AMERICA H2 17 profits affected by Hurricane Harvey and higher bonuses m H2 H1 H2 H1 Fees Underlying profit Reorganisation costs (0.1) (0.1) (0.2) (0.2) Segment profit Margin 9.8% 12.2% 9.7% 14.4% 27

28 BUILT AND NATURAL ENVIRONMENT: NORTH AMERICA Good performance from all streams 2017 All three businesses, Infrastructure, Ocean Science and Environmental Risk, performed well H results were impacted by Hurricane Harvey (c. 0.4m) Greater share of shared service costs following Energy North America decline Prospects Good Texas infrastructure market and strong economic fundamentals should lead to good growth. Cost of investment in people will temper performance 28

29 ENERGY Lower fees, margin improved, costs are more aligned to workload ccy ¹ Fee income ( m) Segment profit ( m) 2, Margin (%) 9.7% 7.5% 7.4% Adjusting for provision reversals: Segment profit ( m) Margin (%) 7.0% 1.7% 1.6% (before provision reversals) ¹ 2016 results restated at 2017 currency rates ² After reorganisation costs of 0.4m in 17, 3.6m in 16 3 After provision reversals (2017: 1.8m, 2016: 4.2m) 29

30 ENERGY Fee levels stabilising, higher provision reversals in H m H2 H1 H2 H1 Fees Underlying profit Reorganisation costs (0.2) (0.2) (1.2) (2.4) Segment profit (1.4) Margin % 11.2% 8.3% 18.9% (4.1%) Adjusting for provision reversals: Segment profit ( m) (1.4) Margin % 7.8% 6.2% 7.3% (4.1%) 30

31 ENERGY Fee levels stabilising; we remain committed to this important sector 2017 Fee levels lower, but appear to be stabilising Cost more aligned to workload, much lower re-organisation cost Provision reversal 1.8m (2016: 4.2m) Prospects While oil price remains stable activity levels in our key upstream sectors should not decline further and some fee growth is possible. A similar level of provision reversals is unlikely, therefore profit growth is uncertain 31

32 ENERGY A good investment 130m invested in Energy businesses since 2003, that provided a platform for NA and AAP expansion Generated more than 300m of segment profit Trading improved in H2 but less good than expected Board considers that performance of traditional services will be lower for longer Prudent impairment charge of 40m, remaining goodwill 27m 32

33 AUSTRALIA ASIA PACIFIC West Coast declines; project management strong, lower re-organisation costs ccy ¹ Fee income ( m) Segment profit ( m)² Margin (%) 11.3% 10.9% 10.9% ¹ 2016 results restated at 2017 currency rates ² After reorganisation costs of 0.6m in 17, 1.2m in 16 33

34 AUSTRALIA ASIA PACIFIC H2 profit includes 0.6m provision for gain share/pain share project m H2 H1 H2 H1 Fees Underlying profit Reorganisation costs (0.2) (0.3) (0.2) (1.0) Segment profit Margin 10.8% 11.9% 11.8% 10.0% 34

35 AUSTRALIA ASIA PACIFIC Project management driving performance 2017 The active Australian Defence sector provided considerable project management opportunities Government infrastructure and land development markets were buoyant and helped most east coast units 0.6m provision in H2 for gain share / pain share project hampered progress The energy and resource sectors continued to struggle Prospects Market conditions in public and private sectors and non-resource markets are generally good and growth is likely in our east coast businesses. However, our smaller west coast businesses face weak resource markets 35

36 GROUP OUTLOOK Generally good market conditions and the Group should grow overall Investment in strategic priorities will have benefit but will drive performance in 2019 and beyond Acquisitions will add to organic growth anticipated 36

37 AGENDA 1. Introductory Comments 2. Group Financial Results 3. Business Performance 4. Initial Impressions 37

38 BUILDING A NEW BOARD 30 September 2016 Phil Williams retired as Executive Director 31 October 2016 Brook Land retired as Board Chair 16 November 2016 Ken Lever appointed Board Chair 31 May 2017 John Bennett retired as Audit Chair 1 June 2017 John Douglas appointed CEO designate Allison Bainbridge appointed Audit Chair 11 July 2017 Liz Peace appointed Non-executive Director 4 August 2017 Louise Charlton retired as Non-executive Director 31 August 2017 Alan Hearne retired as CEO 1 September 2017 John Douglas appointed as CEO 38

39 GOOD FUNDAMENTALS Safety is OK and improving pockets of excellence Profitable with strong cash flow Balance sheet strength and supportive lenders Generally well developed business unit strategy - resulting in good margins Well positioned in an attractive - and still consolidating - industry Diversified blue chip client base Client work that is both important and a relatively small portion of project cost Respect for money managers drive for margin and care about cash Quality people 39

40 OPPORTUNITIES FOR INVESTMENT Portfolio is overly diverse but there are few opportunities for rationalisation Staff turnover is above industry norms reducing this will require investment but will improve margins/allow organic growth Limited staff development - particularly in general consulting skills including sales Brand is poorly defined - greater clarity is important for staff (particularly younger staff), clients, business vendors - and for investors IT systems are robust but local and in most cases at the end of an investment cycle Management is unused to working collectively 40

41 AMBITION AND FIVE CLEAR PRIORITIES We want to have a sustainable presence in the FTSE250. We will achieve this by, initially, focussing on five clear priorities; 1. Investing in people and reducing staff turnover 2. Telling our story better for staff, clients, business vendors and, of course, investors 3. Exploiting revenue synergies where they exist but not where they don t. Defining those sectors and services that will be our core focus 4. Revitalising the Energy business to better exploit opportunities in oil and gas and in broader energy markets 5. Growing our businesses organically and through selective acquisition with a particular acquisition focus on North America 41

42 STRONG FUNDAMENTALS, SIGNIFICANT CHANGE, REAL OPPORTUNITY Strong fundamentals - Safety is solid and improving - Improved trading performance PBTA of 53.9m (2016: 50.7m) - Strong cash generation cash conversion of 91% - Committed facilities in place with headroom - Leverage improving to 1.3x and now within target range Significant change - New CEO after 30 years - Comprehensive board renewal - Recognised energy impairment of 40m Real opportunity - Selective investment in people, brand and connectivity will improve organic growth - Acquisition opportunities remain in rapidly consolidating industry - Energy has limited downside and significant optionality 42