Richard Leupen, Managing Director & CEO UGL Delivering Sustainable Growth. Macquarie Capital Securities Conference May 2008

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1 Richard Leupen, Managing Director & CEO UGL Delivering Sustainable Growth Macquarie Capital Securities Conference May 2008

2 Agenda Overview of United Group Business strategy and opportunities Financial and investment highlights Outlook 2

3 Overview

4 About United Group Limited A service company supporting essential infrastructure and resources Market capitalisation of A$2 billion-plus 40,000 people including sub-contractors Values of safety, integrity, outstanding customer service, teamwork and open communication United Group provides the following services to support the operating businesses: Human Resource Tax Management Investor Relations Risk Management Insurance M&A Treasury Management Corporate Finance Policy and Procedures Legal Compliance HSSE Delegation of Authority Delivery method Technology partners Alliance or costplus contracts EPCM Global coverage PPPs Sectors Property Water Energy Transport Rail Resources Geography Australia New Zealand Asia North America Parts of Europe & Middle East Customers Government Blue-chip companies Institutions Services Project management Asset management Engineering design Manufacturing Construction Facilities Management Corporate Real Estate 4

5 Strong leadership team Managing Director & CEO RICHARD LEUPEN Chief Legal Officer & Company Secretary David Simpson Internal Audit Chief Operating Officer Australia/Asia Murray Vitlich Chief Operating Officer Americas/Europe Lou Lanzillo Chief Development Officer David Nelson Chief Administration Officer Paul Long Chief Financial Officer Phil Mirams Infrastructure/ Resources Property Services UGL Infrastructure Paul Dalgleish UGL Rail Andy Summers UGL Resources Jon Birman US David Montross George Keches Asia Tony Seah Australia/ NZ Robin Silvester United Group s leadership team has grown and diversified to reflect greater scope and scale Corporate head-office team supports divisional and regional chiefs Succession management in place throughout the organisation 5

Blue-chip customers and partners Property

6 Blue-chip customers and partners Property CRE State of California Property FM Harvard University & Business School Qatar Sports Facilities Jurong Township Rail Texmaco Limited Water & Energy Japanese Gas Corporation Singapore Public Utilities Board Jyoti 6

7 Workplace relations and people Workplace relations Employees Not experiencing major changes Relationships with unions remain sound and constructive UGL has 30 years experience in managing workplace relations UGL is proactively responding to skills shortage United Group Limited Subcontractors UGL Services UGL Resources UGL Rail UGL Infrastructure 38,853 Strategy to recruit experienced mature age workers Apprenticeships Training and development programs Offshoring/outsourcing Overseas recruitment initiatives Graduate recruitment 3,703 3,773 5,032 5,696 7,879 10,678 11,099 Jun 01 Jun 02 Jun 03 Jun 04 Jun 05 Jun 06 Jun 07 Dec 07 7

USafe Goal is to perform in a best practice environment USafe programs developed better knowledge and competency in applying HSSE management higher visibility of safety activity in the workplace

8 USafe Goal is to perform in a best practice environment USafe programs developed better knowledge and competency in applying HSSE management higher visibility of safety activity in the workplace stronger processes of verifying safety processes are working Preventing injury to people, damage to environment/property and all forms of loss 10 Declining lost-time injury rates LTIFR TRCFR Jun 02 Jun 03 Jun 04 Jun 05 Jun 06 Jun 07 Dec

9 A$6.7 billion order book and growing Record order book at December ,709 3,000 2,500 Order book by year 2,526 United Group Limited UGL Services UGL Resources UGL Rail UGL Infrastructure 4,283 4,401 A$ million 2,000 1,500 1, , , / / / /11 & Beyond 2,686 Order book by sector 2,252 2,301 Manufacturing 8% 1,233 1,124 Engineering Projects 29% Maintenance & Services 63% Jun 01 Jun 02 Jun 03 Jun 04 Jun 05 Jun 06 Jun 07 Dec 07 Strong forward order book with long-term recurring revenues 9

Order book supported by recurring work Order book excludes rail parts supply business $3 billion in its lifetime UGL has 95% retention rate of long term property services projects NAB property

10 Order book supported by recurring work Order book excludes rail parts supply business $3 billion in its lifetime UGL has 95% retention rate of long term property services projects NAB property services have secured two re-competes over ten years DFAT have secured two re-compete over seven years UGL has worked with QR for 53 consecutive years Alcoa and UGL share a 40 year relationship Telstra have secured two re-competes over ten years Does not include extension options on existing contracts Trackstar Powerlink Current order book excludes major Asian property services project still at preferred tenderer stage Singapore Sports Hub 10

A healthy tendering pipeline More than A$5 billion of tenders underway A$3.

35 billion in rail A$200 million in resources A$1 billion in property services

billion on infrastructure in next four years $80 billion of resources projects identified

need for more essential infrastructure being realised Global property services

11 A healthy tendering pipeline More than A$5 billion of tenders underway A$3.3 billion of new contracts wins year to date A$750 million in infrastructure A$1.35 billion in rail A$200 million in resources A$1 billion in property services Macro-economic environment remains robust Australian governments to spend more than A$180 billion on infrastructure in next four years $80 billion of resources projects identified Australia s resource construction spend to exceed A$38 billion over next two years Asia s need for more essential infrastructure being realised Global property services experiencing once in a generation shift to end-to-end outsourcing Growth in sustainability, security, environmental services and healthcare 11

12 Business Strategy and Opportunities

13 United Group s strategy SAFETY FOCUS SERVICES DRIVEN STRATEGY VALUES HONESTY AND OPENNESS IN COMMUNICATION SECTOR FOCUS RECURRING REVENUE STREAMS INTEGRITY PURPOSE TO DELIVER SUSTAINABLE AND RESPONSIBLE WEALTH CREATION FOR OUR SHAREHOLDERS OUTSTANDING CUTOMER SERVICE ESSENTIAL INFRASTRUCTURE TEAMWORK SAFETY GLOBAL PROPERTY SERVICES ALLIANCE AND TECHNOLOGY PARTNERSHIPS 13

14 Business differentiation vs value creation Strong growth Life-cycle partner Stepping up the value chain Innovation & technology Managing risk in fields of expertise Labour, Management, Systems, Technology & Capital Value Creation & Return Labour Labour, Management & Systems Labour, Management, Systems & Technology Differentiation: Innovation, People, Risk Management, Safety 14

Infrastructure/resources Focused on essential infrastructure and resources in Australia, New Zealand and Asia Complementary practices and disciplines exist in UGL Infrastructure, UGL Rail and UGL

15 Infrastructure/resources Focused on essential infrastructure and resources in Australia, New Zealand and Asia Complementary practices and disciplines exist in UGL Infrastructure, UGL Rail and UGL Resources Ensure United Group s delivery is the best in Australia then take to new international markets Asia playing an increasing role in all our sectors material sourcing and fabrication activities growing Sourcing material & fabricated products from India and China Reviewing supply chain/outsourcing/joint ventures Continue to partner with global leaders General Electric, Balfour Beatty, Alstom, Mitsubishi, Aker Kvaerner Rod Mill, QAL 15

Property services Property services is becoming a global business but outsourcing is still in its infancy The world s biggest asset, and it will be here forever Providing services delivers

16 Property services Property services is becoming a global business but outsourcing is still in its infancy The world s biggest asset, and it will be here forever Providing services delivers sustainable, long-term growth with attractive margins North America is the largest market, headquarters to 97% of the world s multi-national companies Three markets: cities, national and global An opportunity to establish UGL Services as a global leader the window is open Singapore Sports Hub 16

17 Financial and Investment Highlights

18 First-half summary Record first half performance Revenue up 20% to A$1.6 billion Operating revenue A$m 2, ,549.5 EBIT Margins improved to 5.6% from 4.8% Underlying NPAT & MI up 51% to A$53.3 million 1, , ,076.9 Record order book up 52% to A$6.7 billion plus renewals With next year s forward order book up 48% Record contract wins of A$3.3 billion across all sectors North American business performing strongly Underlying* NPAT & MI A$m Continued emphasis on safety programs * Excludes amortisation of intangibles Investment on systems and processes, risk management and people Sustainable strong growth in all sectors

19 Historic performance 2300% 1 Year 3 Years 8 Years 2100% TSR EPS * -6% 6% 89% 97% 1066% 287% (34% p.a.) (16% p.a.) 1900% Dividend 18% 73% 225% (11% p.a.) 1700% EBIT * 24% 215% 382% (21% p.a.) 1500% * EPS and EBIT from June December EBIT adjusted for goodwill amortisation. 1300% 1100% 900% 700% ASX All Ordinaries United Group Limited 500% 300% 100% -100% Apr 2000 Apr 2001 Apr 2002 Apr 2003 Apr 2004 Apr 2005 Apr 2006 Apr 2007 Apr

20 Diverse revenue and earnings Revenue Contribution (HY08) EBIT Contribution (HYO8) UGL Services, 28% UGL Infrastructure, 23% UGL Services, 29% UGL Infrastructure, 16% UGL Resources, 14% UGL Rail, 34% UGL Rail, 35% UGL Resources, 21% Total = A$1.6 billion Total = A$106.4 million (excluding corporate allocations) 20

21 Risk management financial United Group has a conservative balance sheet 41% Gearing Net Debt to Equity Gearing Target Range 40-50% 45% 40% Gearing 40% debt to equity 32% US-based debt means lower interest costs and natural currency hedge 26% 23% Constantly looking for ways to reduce financial risk 6% US debt refinancing to lock in borrowing rates Head-room available to pursue appropriate corporate growth opportunities (10%) H

Risk management operational United Group continues to strengthen management of contracts United Group is moving away from fixed price contracts Isolated issues emerged in first-half but downside was

22 Risk management operational United Group continues to strengthen management of contracts United Group is moving away from fixed price contracts Isolated issues emerged in first-half but downside was limited Rigorous review of contracts has not shown up any areas of concern Group Tender Committee operates as effective wicket-keeper Strong ties between business development, commercial and legal teams 22

23 Outlook

24 Outlook More than A$5 billion of tenders underway in all sectors and no slowdown in pipeline of activity Monitoring impact of US recession and potential flow-on effects in Australia but resilient Positioning United Group for the longer term Developing management team Embedding business processes Redoubling risk management Focus on strong cash-flow, balance sheet and return on capital Order book of A$6.7 billion plus recurring income Next year s forward orders up 48% On track to meet stated targets Well placed to deliver sustainable growth over the longer term 24

2007 Half Year Results: United Group Delivering Continued Growth. Richard Leupen Managing Director and CEO David Irvine Chief Financial Officer

2007 Half Year Results: United Group Delivering Continued Growth Richard Leupen Managing Director and CEO David Irvine Chief Financial Officer Agenda 2007 half year highlights Divisional reports: United