United Group – Global Strategy

Richard Leupen, Managing Director and CEO1 April 2008

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Agenda

• About United Group– Operations excluding Australia/New Zealand

• Key Drivers

• Global Strategy

• Conclusion

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About United Group

A service company supporting essential infrastructure and resourcesA service company supporting essential infrastructure and resources

CustomersGovernmentBlue chip companies

CustomersGovernmentBlue chip companies

GeographyAustraliaNew ZealandAsiaUSAUK

GeographyAustraliaNew ZealandAsiaUSAUK

SectorsProperty WaterEnergyTransportRailResourcesDefence

SectorsProperty WaterEnergyTransportRailResourcesDefence

Delivery MethodTechnology partnersAlliance or cost plus contractsEPCMGlobal coveragePPPs

Delivery MethodTechnology partnersAlliance or cost plus contractsEPCMGlobal coveragePPPs

ServicesCorporate real estateFacilities managementProject managementAsset managementEngineering designManufacturingConstruction

ServicesCorporate real estateFacilities managementProject managementAsset managementEngineering designManufacturingConstruction

Values of safety, integrity, outstanding customer service, teamwork and open communicationValues of safety, integrity, outstanding customer service, teamwork and open communication

Market capitalisation of over $2 billion, order book of $6.7 billion, revenue approaching $4 billion 40,000 people including sub-contractors

Market capitalisation of over $2 billion, order book of $6.7 billion, revenue approaching $4 billion 40,000 people including sub-contractors

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Encouraged to Share• Payroll/HR• IT/Website

• Procurement• Physical Resourcing

• Offices/Workshop• Labour

• Market Knowledge• Projects

About United Group

External• ASX and ASIC Reporting• Investors• Media• M&A• Banks• Government

Risk ManagementInsurance

Treasury ManagementIndustrial Relations

LegalHealth Safety Security Environment

Human ResourceTax Management

Delegation of Authority

Shared Services Strategic Marketing

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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)

Revenue 2007 $2.56bRevenue 2002 $722.6m

Infrastructure & Resources

55%

Rail 45%

Resources 14%

Services 16%

Rail 42%

Infrastructure 28%

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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

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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 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

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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 Resources– Reviewing supply chain from China– Outsourcing steel detailing

• 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 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

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Global Reach

Cities with main offices Cities with presence UNICCO OfficesMiami Lakes

Houston Tampa

Boston

New Jersey New York

Washington DCPhiladelphia

Chicago

AtlantaCharlotte Research Triangle Park

Detroit

Cleveland

Cincinnati

Indianapolis

Milwaukee

Minneapolis

St LouisDenver

PhoenixDallas

Los Angeles

San Diego

San Francisco

South Portland

Bloomfield East Hartford

Newton

ArlingtonCentreville

Richmond

Austin

Honolulu

Mexico City

Brasilia

Buenos AiresSantiago

Washington DC

New York

CalgaryVancouver

Edmonton

St LaurentOttawaEtobicoke

Lagos

Pretoria

Harare

Nairobi

Riyadh

IslamabadCairo

Tel AvivNicosiaMalta

RomeBelgradeGeneva

ParisLondon Berlin

The HagueLeedsGlasgow

BelfastDublin

KathmanduNew Delhi

DhakaDubai

Bangalore

Mumbai

ColomboChennai

Rangoon

Perth

SingaporeKuala

Lumpur

Phnom PenhBangkok

Hanoi

Vientanne ManillaHong Kong

Beijing

GuangzhouShanghai

Tokyo

MelbourneAdelaide

Hobart

SydneyCanberra

Auckland

Wellington

DarwinHoniara

TarawaVanimo

Pohnpei

NoumeaNuku’ Alofa

Port VillaSuva

Apia

Brisbane

Stockholm

Toronto

Port Moresby

Qatar

UGL EquisUGL Unicco

UGL InfrastructureUGL Premas

UGL Rail

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Customers and Partners

Balfour BeattyJyotiSingapore

Public Utility Board

Japanese Gas CorporationWater & Energy

TexmacoALSTOMGE –TransportationMTRRail

JurongTownship

Qatar Sports Facilities

Department of Foreign Affairs

and Trade

Harvard University &

Business School

Property – FM

State of California

National Australia BankAGFANokiaProperty – CRE

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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

2005 2006 20071998 2002

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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 multi-national 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

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The global property services landscape

Increasing complexity of processes and systems

Incr

easi

ng s

trat

egic

con

tent

Single Services

Multiple Hard & Soft Services

FM management agent

FM + delivery

UGL - End-to-end CRE / FM Solutions

End-to-end Operations

BPO

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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

www.unitedgroupltd.com