Monday, 1 June 2015

Market Update Presentation

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• Extensive project reviews – no new project issues identified• Ichthys CCPP reset remains on track – increasing confidence in provision• Significant reduction in WIP balance to-date – most long dated issues now resolved• Business reviews complete; identifying opportunities for cost reduction and improved

efficiency, and identifying business competitive positioning and growth opportunities

• Right sizing overheads for standalone E&C company – reductions of $33m per annum• New operating structure developed to drive greater management focus and clarity• The right team now largely in place• UGL Way – consistent disciplines and governance being formulated and rolled out

• Focus on sales maintained in 2nd half – committed forward order book sits at $5.1b• Vision and future plans reset – mapping out the approach and metrics for a return to

strong growth and economic performance• Expecting 3% EBIT margins in FY16 and 4% in FY17 on strong revenue growth

CEO 6 month update – establishing the foundation for the New UGL

Project andBusinessreviews

Team andculture

Setting upfor a strong

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The new UGL Vision and strategic priorities

UGL VISION An industry disruptor that dominates the Australian market through theapplication of world leading technology and execution capabilities taking

the smartest solutions to our clients and sectors globally

UGL VISION

An industry disruptor that dominates the Australian market through the application ofworld leading technology and execution capabilities taking the smartest solutions to our

clients and sectors globally

UGL VISION

An industry disruptor that dominates theAustralian market through the applicationof world leading technology and executioncapabilities taking the smartest solutions

to our clients and sectors globally

STRATEGIC PRIORITIES

LEAD IN SAFETY AND SUSTAINABILITY

CONSISTENTLY DELIVER

BUILD A WORLD CLASSTALENT BASE

BUILD OUR PORTFOLIO STRENGTHSTHROUGH INNOVATION

DELIVER STRONG ECONOMICRETURNS FOR SHAREHOLDERS

BE THE PARTNEROF CHOICE

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Description

• Complete project reviews and implement new initiatives

• Complete restructure of divisional and corporate overheads to right size the business

• Focus on and reduce WIP balance

• Improve project gross margin delivery

• Convert identified pipeline opportunities

• Realise full run-rate of cost reduction initiatives implemented in FY15

• Deliver minimum cash flow conversion of 70%* excluding Ichthys CCPP

• Revenue step change driven by exposure to transport infrastructure and LNG maintenance

• Commencement of major contracts within Technology Systems and Asset Services divisions

• Improvement in margin due to replacement of nil margin revenue with new profitable contracts

• Sustainable enterprise and industry leader

• Continue to seek opportunities for growth and value enhancement

Roadmap to UGL’s vision

FY16Step 2:

Turnaround

FY17Step 3:

Step change

FY18 + beyondStep 4:Growth

FY15Step 1:Reset

Completed

* Based on EBITDA less interest and tax

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Agenda

1. Project Reviews Ross Taylor

2. Update on Ichthys CCPP and SMP Projects Ross Taylor

3. Business Review Ross Taylor

4. FY2015 Guidance Overview Ross Taylor

5. FY2015 Guidance & Review Ray Church

6. Looking Forward Ross Taylor

7. New UGL Ross Taylor

8. Governance & Risk Management Ray Church

9. Order Book & Pipeline Ross Taylor

10. Outlook Ross Taylor

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Project ReviewsRoss Taylor

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104 projects80%* of FY2015 revenue

RelativeLevels ofPotential

Risk

Category 126

50%* FY2015 revenue

Review Approach

Interrogationof existingreviews &

reports

Follow upassessmentswith projectleadership

Projectsite visits

wherepractical

Risk considerations:

• FY2015 revenue impact

• Historic marginperformance

• WIP balance

• Unapproved variations

• Emerging new projectdelivery challenges

• Sector coverage

Project reviews – scope and approach

* Excluding Ichthys CCPP & MTM Joint Venture from the project review scopeIchthys subject to separate review processes and MTM excluded due to the robust joint venture risk and governance framework combined with stable historical performance

Category 247

25%* FY2015 revenue

Category 331

5%* FY2015 revenue

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Key findings

Key Project Review Findings

• No new project issues identified

• Robust process governing bids and tenders • Margin leakage between bid margin and

delivered margin due to: ‒ Inconsistency in project management

capabilities and performance

‒ Lack of consistency and implementation of UGLproject management disciplines and reviewprocesses

‒ Strong SAP platform not fully utilised

Tracking to forecast withpotential on some projectsfor improved margin withcontinued solid performance

% of FY15 Forecast Project GM Reviewed

Forecast marginmaintained provided closemanagement of identifiedproject issues

Potential for marginleakage withoutdiligent management

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Next steps to improve project performance

Actions Implementation Status

Close out critical project specific review recommendations

Standardise project review content and guidelines

Standardise project management reporting through SAP BeingImplemented

Empower project leaders with appropriate financial limits On track

Strengthen project management capabilities and build bench strength Commenced

Improved processes and procedures – “The UGL Way” Commenced

Restructure project team incentives to reward performance Commenced

Immediate Jun-15 Jun-16

Review | Revise | Implement

Review | Develop | Train

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Update on Ichthys CCPP and SMP ProjectsRoss Taylor

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Ichthys CCPP Project Recap

• $550m ($275m UGL share) construction of CCPP• Awarded by JKC Australia LNG Pty Ltd; Joint Venture between JGC Corporation, KBR

and Chiyoda Corporation• Scope includes design, supply of the balance of plant and construction

• 50/50 joint venture between UGL and CH2M HILL• CH2M HILL is lead partner and manager for the Joint Venture• Joint Venture is a member of a consortium with GE• GE is contracted to supply gas turbines, steam turbines and heat recovery steam

generators

• Originally scheduled to be completed by December 2016• Design to be completed by April 2014 with construction ramping up in 2015 and 2016

Client andScope

OriginalSchedule of

Delivery

DeliveryPartners

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Ichthys CCPP project status

• Overall project 72% complete at consortiumlevel

• UGL & CH2M HILL JV project scope 56%complete

Design 96% complete

Procurement 85% complete

Construction 30% complete

• Project has stabilised with productivity targetsbeing achieved and performance in line withrevised cost to complete

• Substantive negotiations with the client are wellprogressed

• Historic and current claims are being activelypursued in parallel with negotiationsF

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Expected financial impact

• Project stabilisation increases confidence in adequacy of $175 million provision

• If commercial negotiations are successfully concluded, then this will further increaseconfidence levels in this provision

• Cash flow impact of the provision is forecast over a three year period, adjusted tobetter align with expected progress and phasing of expenditure

Cashflow phasing ($m)

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Ichthys SMP project recap

• $740m ($370m UGL share) contract for SMP construction package forIchthys LNG project

• Awarded by JKC Australian LNG Pty Ltd (JKC)• Scope includes installation of process trains and additional pre-

commissioning and commissioning activities

• 50/50 joint venture between UGL and Kentz Corporation Limited• Kentz is a global engineering company serving a blue chip client base

primarily in the oil and gas, petrochemical and mining and metals sectors• Proven track record in SMP construction in LNG across complex projects

• Originally due to be completed before start up of the second process train

• Estimated original completion end of 2016 calendar year

Client andScope

OriginalDeliverySchedule

DeliveryPartner

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Ichthys SMP project status

• Construction 10% complete• No margin will be recognised until project

is 30% complete in accordance with JVrevenue recognition policy

• Construction only schedule of ratescontract

• Site productivity tracking in line withtargets

• Slippage in early milestones due to delaysin client procurement

• Active contract management withvariation notifications submitted to clientin accordance with contract terms

• Client has now formally advised finaldelivery dates of future modules andpiping and asked for a formal submissionaround EOTs and acceleration

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Business ReviewRoss Taylor

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Business review scope and key outcomes

Sectoranalysis and

outlook

Marketpositioning &

strategiclandscape

Businessperformance

review &benchmarking

Assessment ofoperatingmodel &

capabilities

• Right size overheads to standalone E&C company• Overhead cost reduction $33m• Lean corporate centre with increased functional responsibilities

shifted to Divisions

Overheads

• Improved allocation of direct overhead costs to projects toimprove accuracy of billing and bid pricing

• Close gaps in identified core project management capabilitiesGross Margin

• Clarify organisational structure and accountabilities for Divisionsand Corporate

• Consolidate execution of higher risk major projects within a singledivision under experienced senior leadership

• Enhance risk management and governance framework

OperatingModel

Scope Outcomes

• Capital allocation decisions determined by return profile• Directed to businesses where we operate in attractive markets with

a strong ability to win

MarketPositioning

• Distribute balance sheet to Divisions• Cash flow management to be implemented at project level• Implement KPIs that measure return on capital as well as sales and

earnings performance

Returns &Cash Focus

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FY15 Guidance OverviewRoss Taylor

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FY15 operational update

• $2.1 billion in contract wins and renewals May YTD• Order book $5.1 billion at 31 May 2015• Well positioned for $2.4 billion revenue in FY 2016

• Expected FY15 revenue of $2.3bn and underlying EBIT $47m- Excludes H1 DTZ revenue $729m and EBIT $27.8m

• Underlying EBIT margin of 2.0%• Impacted by an additional $74m of provisions and other one-off items in H2• Balance sheet and WIP focus has improved cash position

• LTIFR 0.8: down 60% FYTD, 48% reduction in days lost through injury• TRIFR 6.4: down 15% FYTD• Over 50% improvement FYTD in leading indicators

Safety

Wins &Renewals

FY15

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FY15 Guidance and ReviewRay Church

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2020

1. Includes $240m nil margin revenue H1 $100m, H2 $140m2. Excludes $27.8m DTZ EBIT from revenue of $729m in H13. H1 excludes capitalised tender costs incurred in the period of $8.9m resulting in a

comparable EBIT margin of 1.6%

FY15 Guidance

H1 H2 FY15

Revenue 1, 2 1,229 1,100 2,328

Engineering Operating Profit 39 30 69

Group Overhead (11) (11) (22)

EBIT 2 28 19 47

EBIT % 3 2.3% 1.7% 2.0%

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Resetting the business in FY15 for improved margin performance from FY16

Initiatives Outcomes

Overhead – people & facilities Reduced overhead in management and offices/ facilitiesby $33m per annum

WIP reduction Further advanced collections and WIP clean-up WIP balance expected to be reduced from $257m at 31

December to $165m - $175m by 30 June.

Balance Sheet review tender costs capitalised

Prior year carrying value adjusted by $9.6m (non-cash) toalign with new policy

Only capitalised where UGL is preferred or successful insecuring a contract

Balance Sheet review asset carrying values

Reviewed carrying value of depreciable plant and debtors;$4.3m non-cash impairment/ write-down

Review of goodwill under new structure to be completedas part of year end close

Balance Sheet review debt restructure

Resizing of headroom on facilities following completion ofDTZ sale

Review of USPP notes

This sets us up to focus FY16 on delivery and improved financial performance

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More accurate cost base for contractbilling and determining tender pricinggoing forward improving GM in futureyears

Restructuring costs of $36.7m incurred in2H FY15

Headcount reduction of circa 200 FTE in2H FY15

Expected to result in annual savings of$33m per annum from FY16

Reducing overheads to align with new operating model

Actions

• Overhead reduction program to right sizeto new business structure

• Corporate overhead consolidated toreflect transition to standaloneengineering company

• Cost accountability and responsibilityshifted directly to the divisions

• Primary role of corporate functionfocused on governance and standardsetting

• Separation of direct costs fromoverheads to ensure all direct costs areallocated to projects and included in GM

Outcomes

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WIP reduction remains a key focus

Progress on WIP WIP movement

• $40m cash received in 2H FY15 insettlement of longstanding resourcessector claims

• $26m cash received from further claimsresolved in 2H FY15; $7.6m write-downon settlement of these claims

• Additional WIP write-down of $16m in2H FY15 relating to valuation of disputedhistorical claims

• Gross WIP expected to reduce from$257m at 31 December 2014 to between$165m - $175m by 30 June 2015

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Summary of one-off events impacting FY15 EBIT

* Preliminary unaudited numbers

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• Net debt expected to reduce to around $40m + $10m at 30 June 2015 from $63m at 31December 2014

• Claims resolution, DTZ wrap-up and normal operating cash funding Ichthys CCPP and restructure

FY15 movement in debt

Cash impact of material one-off items $m

Net Debt 31 Dec 2014 (63)

DTZ Sale Costs (32)

DTZ Final Proceeds 59

Claims Resolved 66

Ichthys CCPP (59)

Restructure Costs (18)

Working Capital Movement 15

CAPEX (8)

Net Movement 23

Net Debt 30 June 2015 * ( + $10m ) (40)

* Estimate only. Subject to working capital collections in June 15

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Capital Structure - Financial Position

Credit metrics Debt and bonding Facilities

Bonding facilities 31 Dec 14 $m

Total facilities 584

Drawn 404

Available facilities 180

Debt facilities 31 Dec 14 $m

Total facilities 448

Drawn 143

Cash 80

Net Debt 63

Available Facilities 305

Total liquidity 385

HY15 FY14

Net debt ($m) 63 567

Net debt / (net debt + equity) 10.2% 32.4%

Net debt / EBITDA 0.3x 2.4x

Interest cover 4.2x 5.2x

• Average debt maturity 2.3 years• Expected at 30-Jun-2015

- Net debt around $40m + $10m- Gearing below 10%- More than $300m available bank capacity- More than $200m available bonding

capacity

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Capital Structure - Financial Position (cont’d)

Maturity profile – December 2014 Commentary

• Financing facilities provided by a mix ofAustralian and international banks

• $448m total facilities include US$123mUSPP notes. UGL no longer holdssignificant US assets nor has significantUS income to justify holding US debt

• Total facilities 33% utilised at H1 periodend

• Intention to:- Reduce debt facilities to $335m and- Proceed with a tender process offering

redemption of USPP notes, as part ofthis reduction

Years:

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Looking ForwardRoss Taylor

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Roadmap to UGL’s vision

Description

• Complete project reviews and implement new initiatives

• Complete restructure of divisional and corporate overheads to right size the business

• Focus on and reduce WIP balance

• Improve project gross margin delivery

• Convert identified pipeline opportunities

• Realise full run-rate of cost reduction initiatives implemented in FY15

• Deliver minimum cash flow conversion of 70%* excluding Ichthys CCPP

• Revenue step change driven by exposure to transport infrastructure and LNG maintenance

• Commencement of major contracts within Technology Systems and Asset Services divisions

• Improvement in margin due to replacement of nil margin revenue with new profitable contracts

• Sustainable enterprise and industry leader

• Continue to seek opportunities for growth and value enhancement

FY16Step 2:

Turnaround

FY17Step 3:

Step change

FY18 + beyondStep 4:Growth

FY15Step 1:Reset

Completed

* Based on EBITDA less interest and tax

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FY16 priorities are focused on delivering a turnaround

• Maintain lean overhead cost base

• Embed consistent standardised commercialand project management disciplines

• Execute well to maintain gross margin

• Deliver organic growth by convertingidentified pipeline opportunities

• Disciplined portfolio management ofbusinesses driving capital allocationdecisions

• Delivery of Ichthys CCPP maintaining focuson an improved financial outcome

Priorities for FY16

• Revenue broadly in line with FY15

• Realisation of $33m cost reductioninitiatives implemented in FY15

• Underlying business to generate 3%EBIT margin

• Expected cash flow conversionexcluding Ichthys CCPP a minimum of70% in future years

Targets

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FY17 is expected to deliver a step change in scale and improved profitability

• Revenue and EBIT growth driven by exposure totransport infrastructure and LNG maintenance

‒ Revenue step change of at least $300m

• New material contracts commencing:

‒ Asset Services: large maintenance andshutdown contracts with Chevron, APLNG,GLNG, BP

‒ Technology Systems: NWRL signalling andcommunications works. Well positioned forM1-M2 in Sydney

• EBIT margin expansion to 4% driven by:

‒ Replacement of nil margin revenue withprofitable new projects

‒ Improved project execution of existingprojects

Key drivers of FY17 step change Revenue growth

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New UGLRoss Taylor

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A new operating model

InfrastructureEngineering &Construction

Div

isio

nsAsset Services Technology

Systems International

• Power, water andresources sector:- Engineering- Procurement- Construction- Commissioning

• Maintenanceservices

• Shutdowns andturnarounds

• Sectors:- LNG- Minerals

processing- Petroleum- Power- Water

• Passenger buildand maintenance

• Freight build andmaintenance

• GE parts sales &distribution

• Supply chainservices

• Componentmanufacture

• Naval shipmaintenance

• Road tunnelsignaling andcommunicationssystems

• Train signalingand controlsystems

• Wirelesscommunications

• Passenger railmaintenance

• Engineeringdesign,procurement,construction andcommissioning ofwater treatmentplants

• O&G pipeline EPCcapability

$645m$460m$975m $250m $10m

Rail & DefenceO

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FY15

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Corp

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UGL leadership team

Ross TaylorCEO

Mark ChilcoteEGM

InfrastructureEngineering &Construction

Ray ChurchCFO

Rebecca HillEGM Investor

Relations & CorpDevelopment

Gitanjali BhallaEGM People &

CultureAdam Clampett

EGM SSQ

DavidMacKenzie

EGM TechnologySystems

Alan BeachamEGM Rail,Defence &

International

Ross TaylorActing EGM

Asset Services

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Rail - Overview

TechnicalSupply ChainManagement

• End to end supply chain solutionsdelivering significant cost savings

• Over $200m of client inventory undermanagement

• National network of componentoverhaul capability

Rolling StockSupply

• Only domestic manufacturer oflocomotives

• Strong systems integration andstructural design capability

• Awarded Project management andcommissioning expertise

AssetManagement

AssetPerformance

• Strong focus on building systems andprocesses to improve outcomes‒ Driver advisory – fuel savings‒ Simulation services‒ Off-boarding data‒ Mobility and SAP EAM

• Over 500 locomotives & 2,500 wagonsunder maintenance

• Over 1,650 passenger cars under UGLUnipart maintenance contract

• Shareholder in Melbourne and Sydneypassenger rail operating franchises

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Rail & Defence – Financial Performance

FY15F Revenue ($m) Order Book by Type ($m)

Order Book by Contract Style ($m)

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Freight Rail – resized and refocused for market opportunities

Market outlook UGL market position

Loco • Significantly impacted by mining slowdown• Limited new build demand• Limited replacement budgets due to cost pressures

of asset owners

• Only Australian manufacturer in market with proventrack record

• Exclusive GE distributor arrangement

Wagon • Significantly impacted by mining slowdown• Replacement requirements supporting flat demand• Standard wagon build performed offshore;

some specialty wagons in Australia

• Focused on specialised wagons and smaller ordersfrom smaller companies

• Asset management proposition valuable to smallercompanies

Bogies • Market for bogie manufacturing to decline inAustralia

• Growth in international markets where lightweightdesign has good application due to low-axle load railnetworks

• Superior product for lightweight, heavy-haul bogierequirements

• Positioned within broader rail build offering

Maintenance • Increased outsourcing of maintenance• Growth driven by increasing use of older fleet and

major upgrade programs

• Clear market leader• Exclusive access to GE parts• Strategically located maintenance facilities

We have resized our Freight business to suit the current market conditions.While we maintain local capabilities in the locomotive and wagon build sectors, our primary

focus is on securing opportunities in the maintenance sector

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Passenger Rail – positioned as local build partner; network privatisations

Market outlook UGL market position

Build • Market growth driven by increasingpassenger rail investment (new networksand metro expansions)

• Build work predominantly performedoffshore due to low cost supply

• Consortiums with solutions for build,operations and maintenance areincreasingly successful in winning work

• Reposition to be a domestic partner tooffshore suppliers - certain projects willrequire local content / partner

• Successful track record of passenger fleetdelivery makes UGL an attractive partner

Maintenance • New and expanded rail networksincreasing demand for passenger railmaintenance

• Potential network privatisation acrosseastern states will also increaseaddressable market

• Leading player in passenger maintenance(NSW, VIC)

• Successful and unique MTM franchise putsUGL in strong position for potentialprivatisations

• Well placed to win further share throughfranchise / PPP consortiums

UGL is a leading player in passenger rail maintenance and is well placed to increase marketshare through potential network privatisations. The business is repositioning itself as a local

build partner for offshore suppliers to compete effectively in the passenger build market

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Defence – ability to drive growth from proven NSM performance

Market outlook UGL market position

Defence • Australian Defence Navy sustainmentspend is forecast to grow

• Defence Materiel Organisation (DMO) islinking sustainment and acquisitioncontracts favouring international OEMs

• Growth expected in Naval ShipManagement (NSM) ANZAC maintenancecontract

• High quality supply chain capabilitythrough the UGL / Unipart relationship

• Strong technical capabilities but smallerscale relative to international peers

Above the lineconsultancy

services

• Qualified for DMOSS panel• Leverage strong engineering and

project management capability inwider UGL group

Naval ShipManagement

• Joint Venture with Babcock to providesurface ship maintenance

• Award winning performance on GMC3contract for ANZAC maintenance

Acquisition &SustainmentProgramme

Manager

Supply ChainManagement

• UGL Unipart provides strongunderpinning capability for Defence toaccess commercial professionaltechnical supply chain managementservices

• LLC Landing Craft sustainment contract• Bidding on Pacific Patrol Boat contract

in JV

UGL’s defence capabilities are underpinned by our strongly performing NSM contract.We will leverage our strong technical capabilities and NSM track record to benefit from the

forecast uplift in Navy sustainment spend

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Asset Services - Overview

Mining andMinerals &Chemicals

• 35 years industry experience providing maintenanceto all of Australia’s alumina refineries

• 30 years coal experience maintaining processinginfrastructure, shutdown and field servicesmaintenance

• Leading provider of maintenance services for chemicalplant operations

LNG / Oil &Gas

• Australia’s largest LNG maintenance services provider• Asset management and maintenance services to

upstream, midstream and downstream oil & gas• 30+ years industry experience• Maintenance service provider across

9 trains in Australia• Services contracts with all major oil & gas asset

owners operating in Australia

Shutdownsand

Turnarounds

• Budget preparation, planning, management andexecution services for turnarounds

• Engineering, planning, procurement, preparation andexecution services for shutdowns

• Turnaround planning, management and execution

Maintenanceservices

• Mechanical and electrical equipment overhauls• Mechanical services for structural works, vessels,

tanks and piping• Maintenance audits and reviews• Managed and coordinated specialist subcontractor

services

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Asset Services – Financial Performance

FY15F Revenue ($m) Order Book by Type ($m)

Order Book by Contract Style ($m)

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Asset Services – well positioned for operational phase of LNG

Market outlook UGL market position

LNG • Strong growth driven by operational phaseof LNG projects and miners looking forproductivity improvements

• Growing reputation in LNG sector

• Core base of secured LNG trains allows forretention of national shutdown andturnaround team

Mining • Recent reductions in maintenance budgetspartially offset by willingness to pay morefor value add services

• Maintenance deficits expected to build asthroughput volumes remain high

• Strong track record in the mining sector

• Strong customer testimonials andexperienced project managers

Powergeneration

• Growth driven by increasing age profile oflarge coal power stations

• Cost pressures in low demandenvironment offset by increasedpropensity to outsource in search for costefficiencies

• Emerging player in a fragmented marketwith capability to gradually becomeleading player

• Potential to leverage maintenance andshutdown excellence in resources divisionto build reputation

UGL is a tier 1 maintenance services provider with a strong track record in minerals processingand a growing reputation in LNG. Building on our experience with Stanwell and the Hazelwoodpower station, we have the potential to expand our capabilities in power generation services

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Technology Systems - Overview

Road Systems

• Recognised industry leader in Australia for deliveryof turnkey electrical, mechanical, fire and trafficmanagement and communications systems formajor road tunnel projects

• Successfully delivered majority of all tunnelcommunications systems in Australia

• 24-7 maintenance services of road tunnelsthroughout Australia

Rail Systems

• Australia’s leading provider of rail infrastructuresystems for mainline, metro and light rail

• Technical expertise in signaling, communications,in-cab electronics, traction power and overheadelectrification

• Locomotive fuel saving solutions

Telecomm-unications

• Design and delivery of optical fibre, microwave andwireless internet networks

Signaling &Comms

• Integrated communications systems for telcocarriers, utilities, rail, resources, broadcast anddefence

• Strong partnerships with world class OEMs• Expertise in fibre optics, microwave links, wireless

networks, satellite earth stations and televisionand radio broadcast systems

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Technology Systems – Financial Performance

FY15F Revenue ($m) Order Book by Type ($m)

Order Book by Contract Style ($m)

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Technology Systems – strong market pipeline of infrastructure new build andupgrade projects

Market outlook UGL market position

Tunnel systems • Market is lumpy due to small number oflarge projects

• However, project pipeline is very strong inthe medium to long term

• Clear market leader with strong localknowledge and experience

• Strong value proposition, offering fullend-to-end systems solution

Train signalling • Market growth driven by new passenger railtrack build (light rail and commuter)

• Majority of accessible market is in new buildas maintenance tends to be insourced

• Leading player in a fragmented market• High level of technical expertise• Preferred integrator to a number of

technology suppliers who seek to work withUGL exclusively

Wirelesscommunications

• Greenfields wireless construction expectedto decline due to mining sector downturnand slower roll out of NBN

• Brownfields opportunities exist astechnologies advance and network ownersupgrade existing infrastructure

• Engineering capability and partneringstrategy has been key to winning projects

UGL is a market leader in technology systems with strong relationships with civil and technicalpartners, and is well placed to continue to win major projects

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Infrastructure E&C - Overview

Resources &Infrastructure

• Greenfield and brownfield engineering,construction and commissioning services

• Structural Mechanical & Piping and Electrical& Instrumentation for large processinfrastructure

Power

• Market-leading EPC capabilities in:- Substations & Transformers- Transmission & Distribution- Generation- Renewables

Water

• End-to-end design, delivery, commission,operation and asset management of:- Water treatment plants- Wastewater treatment plants

Engineer,Procure,

Construct &Commission

• Value engineering, constructability, processengineering, safety by design

• Engineering-driven procurement• Self-perform construct and commissionF

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Infrastructure E&C – Financial Performance

FY15F Revenue ($m) Order Book by Type ($m)

Order Book by Contract Style ($m)

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Infrastructure E&C – market pipeline opportunities favour UGL’s capabilities inPower and Water

Market outlook UGL market position

Power • Lack of private investment in off-grid generation

• Resource companies scaling back expansionprojects

• Opportunities exist in renewables andprivatisation of NSW network

• Clear market leader in power systems with strongtrack record

• Strong engineering capability – can deliverintegrated solutions at lowest cost

Resources • Major LNG projects coming to completion

• Resource companies scaling back expansionprojects

• Solid track record executing SMP and E&I projectsfor Tier 1 resources clients

Water • Stable growth in water treatment sector

• Growth in wastewater sector driven by waterconservation initiatives

• Growth in wastewater recycling plants driven byincreasing policy focus on conservation

• Treatment plant O&M market driven by increasedoutsourcing

• Excellent project delivery track record

• Design capabilities allow for low cost execution onlarger scale projects

While investment in resources infrastructure is declining, UGL is well positioned foropportunities in the Power and Water infrastructure E&C marketsF

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International - Overview

WaterTreatment

• Over 35 years of EPC and ProcessEngineering capabilities for watertreatment plants; both industrial andmunicipal in Singapore

O&GPipelines

• EPC capability for onshore and near-shore pipelines, floating structures andsubsea structures

• Recently awarded Langat pipeline

TransportSystems

• EPC capability for tunnel and buildingmechanical, electrical, plumbing (MEP)services

• Delivering KVMRT Packages 3,4&8

RailMaintenance

• Award wining and only externalmaintenance provider to MTR in HongKong

• Strong project, maintenance,procurement and supply chaincapability across region

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International – Financial Performance

FY15F Revenue ($m) Order Book by Type ($m)

Order Book by Contract Style ($m)

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International – a potential future growth engine

Market outlook UGL market position

International • Hong Kong urban expansion createspotential for new rail projects

• Potential water opportunities in Singapore

• Potential large oil & gas projects expectedin Malaysia and Brunei

• Power and infrastructure opportunities inMalaysia

• Proven rail track record with MTR in HongKong

• Strong relationships with key water sectorclients in Singapore and Malaysia

• Building O&G experience and internationalclient base in Australia, but currentlylimited experience internationally

UGL has a proven track record in rail maintenance in Hong Kong withstrong foundations in the water sector in South East Asia

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Governance and Risk ManagementRay Church

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UGL Way

Standard policies and detailed step-by-step procedures

Linked to all forms, system menus,demo videos, related policies andreport pro-formas

Accessible in one portal and threeclicks from top-to-detail or printedin an easy to use manual

Compulsory for all employeeseverywhere

SAP-enabled

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Governance & Risk Management

Mon

thly

Saf

ety

Revi

ews

EXISTING – REVISED

• Review safety performance and progress against zero harm plans

• Focus on high risk activities and lead indicators

• Deeper-dive on high-risk near misses or incidents

• Driven by EGM SSQ and Division EGM

Mon

thly

Bus

ines

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view

s

NEW

• Monthly meeting between Division EGM and Finance GM, Group CEO and CFO toreview each division’s progress against business plan

• Review all key financial metrics

• Sales pipeline reviewed to ensure the right opportunities are targetted and appropriatewin strategies applied

• Meeting covers a broad range of topics: project review (particularly anyunderperforming projects), people, financials, order book and pipeline, R&O

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Governance and Risk Management – Bid Gate Review

• Strategy review (pre – EOI)• Go / no go review

Initial Opportunity Assessment Tender Stage Post-Tender Stage

• Gate A: Approval to pursue project• Gate B: Approval to prepare tender• Gate C: Approval to submit tender

• Post tender review• Variation review

• Overview of project and scope• Strategic alignment with UGL

business and strategy to win• Key risks and mitigating strategy• Anticipated tender costs

• Scope and contract form / structure• Minimum contract terms• Overview of schedule and contract

terms• Key risks and mitigation strategy,

opportunities and qualifications• Cost estimation, resourcing• Cash flow• Margin analysis – quantum,

justification and stress testing

• If tender changes materially fromtender stage; pre-signing of contract

• Material variations during executionperiod also require GTC approval

An effective process being enhanced in relation to cash flow review elements

EXISTING

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Governance & Risk Management

Proj

ect R

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Star

t Up

EXISTING – REVISEDProject Reviews commence immediately, with special focus;• Ensure projects are resourced, focused and commenced well and as planned during the

bid cycle• Bid project plan, estimate and WBS converted to project plan• Contract reviewed with Project Manager• Project set up in SAP

Mon

thly

Pro

ject

Revi

ews

EXISTING – REVISED

Project reviews continue post start-up, through completion, every month

• Monthly meeting between project managers and divisional EGMs and supportingteams. CEO, CFO or GM Commercial attend larger project reviews from time to time

• Detailed review of project performance to ensure project is tracking to tender

• Special attention given to Opportunities and Risks

• Reviews based on SAP reports

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Governance and Risk Management – Reviews & UGL Way

• Governance supported bydisciplined review processesthat must be

Consistent

Performed well

Clear in accountabilities

Completed on everycontract

• Underpinned by standard andconsistent operatingmethodology

“UGL Way”“UGL Way”

Standard PoliciesDetailed Standard Procedures

System enabled on one platform

Mon

thly

Saf

ety

Revi

ews

Mon

thly

Bus

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sRe

view

s

Bid

Gate

Rev

iew

s

Board of DirectorsRisk & Audit Committee

Proj

ect /

Con

trac

tRe

view

s

Five Year Plan and Annual Business Plan

When combined with a portfolio of contract types and sectors exposure, this simple approach provides greaterpredictability and risk-mitigation

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Order Book & PipelineRoss Taylor

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Order Book

Order Book Over Time ($m) Order Book By Year ($m)

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Order Book – Recurring/Project Mix

All Years FY16

Projects776m45%

RecurringRevenue

959m55%

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Pipeline

Pipeline – Renewals & Preferred ($m) 1 By Division 2

Status 2

Order book excludes maintenance contractrenewal & extension options as well as preferredopportunities

1. Full potential contract value 2. Weighted & qualified

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OutlookRoss Taylor

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Outlook for FY16 and beyond

FY16 FY17

FY16 revenue expected to be broadly inline with FY15 - already 70% sold

Improved project execution to protecterosion of delivered gross margin acrossall projects

Realisation of $33m cost reductioninitiatives implemented in FY15

EBIT margin expected to increase to 3%

Expected cash flow conversion excludingIchthys CCPP of a minimum of 70% infuture years

Substantial step change in revenue by atleast $300m

Growth driven by exposure to transportinfrastructure and LNG maintenance withnew large contracts already secured

Nil margin revenue to be replaced by newprofitable projects

Profitable top line growth combined with alean overhead structure will see furtherimprovement in EBIT margins towards 4%

Once the turnaround is complete in FY16, UGL will be well positioned to reliably deliversubstantial annual revenue and EBIT growthF

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Appendices

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Major Contracts

Name Description DivisionOriginalValue ($m) Duration Contract type

UGL Unipart In JV with Unipart Rail, heavy maintenance andlogistics management services on 1,050 passengercars in Sydney’s passenger car fleet for Sydney Trains& Transport for NSW

Rail 1,400+$900mextensionoption

2012-2019+ 5 yearextensionoption

Schedule ofrates

Metro TrainsMelbourne

Operations and maintenance of Melbourne’spassenger train franchise

Rail 1,300excludingcapital works

2009-2017+ 7 yearextensionoption

Schedule ofrates

North WestRail Link

Design, build, finance and operate the new rapidtransit service as a member of the NRT consortium

Totalconsortiumcontract$3.6bn

• Design and deliver the tunnel systems, rolling stock,rail signalling and overall control systems in JV withMTR Corporation

TechnologySolutions

2015-2019 Lump sum

• Operations and maintenance of the service in JVwith MTR & John Holland

Rail 2019-2034 Schedule ofrates

Freightliner Maintenance of locomotives and wagons operatedby Freightliner Australia in the Hunter Valley

Rail 115 2010-2020 Schedule ofrates

Remaining contract value > $100 million

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Major Contracts

Name Description DivisionOriginalValue ($m) Duration

Contracttype

Pacific National Upgrade and maintenance for a portion of the PacificNational Rail locomotive fleet

Rail 540 Maintenance:2013-2020Upgrade:2012-2016

Schedule ofratesLump sum

Ichthys SMP In JV with Kentz Corporation structural, mechanicaland piping construction package for the Ichthys LNGProject

E&C 370 2014-2017 Lump sum

Stanwell Facilities maintenance and management, overhaulsand project works across Stanwell’s coal, gas andhydro energy assets in Queensland

AssetServices

280 2014-2018+ potential forextension to 5years

Cost plus

Ichthys CCPPPower Station

Design, supply of the balance of plant and theconstruction of a combined cycle power plant for theIchthys LNG project

E&C 275 2012-2016 Lump sum

BP Operation and maintenance of BP’s 17 fuel terminalsacross Australia through a JV between UGL and BP

AssetServices

190 2015-2018+ 3 yearextension option

Schedule ofrates

ChevronMaintenance

Maintenance services for the operational phase ofChevron’s Western Australian assets

AssetServices

NA 2014-2019+ extensionoptions

Schedule ofrates

Remaining contract value > $100 million

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Major Contracts

Name Description DivisionOriginalValue ($m) Duration

Contracttype

APLNG Downstream maintenance, shutdown andmodification project services for the operationalphase of the Curtis Island LNG Facility

AssetServices

NA 2015-2019 Schedule ofrates

GLNG Maintenance, shutdown, engineering and projectservices for Santos GLNG’s Curtis Island LNG facility

AssetServices

120 2015-2018+ extensionoptions up to 4years

Schedule ofrates

Remaining contract value > $100 million

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Case StudiesAsset Services

Project: GLNGClient: SantosLocation: Curtis Island, Gladstone, QLDDescription: 3 year contract with options to extend for a further 4years. UGL will perform maintenance, shutdown, engineering andproject services for Santos GLNG’s LNG facility on Curtis Island.Santos GLNG is led by Australian company Santos in partnership withPETRONAS, Total and KOGAS. The project involves ongoing gas fielddevelopment in the Surat and Bowen Basins, a 420-kilometre gastransmission pipeline, and the construction of an LNG plant on CurtisIsland. The facility will receive and process natural gas to LiquefiedNatural Gas for export and the first LNG cargo is scheduled to bedelivered mid-2015.

Project: APLNGClient: ConocoPhillipsLocation: Curtis Island, Gladstone, QLDDescription: 4 year contract with ConocoPhillips, on behalf ofAustralia Pacific LNG (APLNG), providing downstream maintenance,shutdown and modification project services for the operationalphase of the Curtis Island LNG Facility.APLNG is a joint venture between ConocoPhillips, Origin andSinopec and is the largest producer of gas from coal seams inAustralia. The facility will receive and process natural gas toLiquefied Natural Gas for export and the first LNG cargo isscheduled to be delivered mid-2015.F

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Case StudiesAsset Services

Project: StanwellClient: Stanwell CorporationLocation: QLDDescription: Work commenced on the 4 year contract (with thepotential to extend the contract term up to five years) in July 2014.UGL is performing four categories of services for Stanwell, across itscoal, gas and hydro energy assets in Queensland. These servicesinclude facilities maintenance and management; assetmaintenance and management; overhauls; and project works.

Project: Chevron asset maintenanceClient: Chevron AustraliaLocation: WADescription: A 5 year contract that kicked off in early 2014, UGLundertakes the provision of maintenance services for theoperational phase of Chevron’s Western Australian assets. Underthe scope of the contract, UGL performs mechanical, electrical andinstrumentation base maintenance, plant turnaround andbrownfield execution services.

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Case StudiesAsset Services

Project: UGL-Kaefer JVClient: Esso AustraliaLocation: VICDescription: A 7 year General Maintenance Services and FieldManaged Modifications contract with Esso Australia covering anumber of operating facilities, including 21 offshore oil and gasprocessing facilities, two onshore plants, a marine terminal andonshore pipelines. The multi-disciplinary maintenance and minorproject services include mechanical, electrical and instrumentation,scaffolding, painting, insulation, civil, procurement and planningsolutions.

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Case StudiesEngineering & Construction

Project: Ichthys SMPClient: JKC (a JV between JGC Corp, KBR & Chiyoda Corp)Location: Darwin, NTDescription: The UGL Kentz JV (a 50/50 joint venture between UGLand Kentz Corporation Limited) is delivering a comprehensiveStructural, Mechanical and Piping (SMP) construction package forthe Ichthys LNG Project in Darwin, Australia. The scope of workincludes the provision of services for site wide installation forprocess trains and additional pre-commissioning andcommissioning expertise. Work commenced on-site in mid-2014and is scheduled to be completed before start-up of the secondLNG train.

Project: Roy HillClient: Alinta EnergyLocation: East Pilbara, WADescription: Nearing completion, this project has seen UGL design,procure, construct, test and commission the 120km High Voltage,single circuit transmission line between Newman and the Roy HillIron Ore (RHIO) Mine, as stage one of Alinta Energy’s East PilbaraLink Project. Also included in the scope of the project were design,construction, testing and commissioning of a 66/220kV substationand associated 66kV connecting works at Newman, a 220/33kVsubstation at RHIO Mine, a 6MW reciprocating diesel engine PowerStation at RHIO Mine and a 33kV electrical distribution system atRHIO Mine.

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Case StudiesRail & Defence

Project: GE ‘AC’ Evolution locomotivesClient: Roy Hill ProjectLocation: Roy Hill, Pilbara, WADescription: Supply of 21 GE “AC” Evolution freight locomotives tothe Roy Hill project to support the haulage of iron ore from themining operations to Port Hedland. The Roy Hill project is a large,low phosphorous ore body located 105km north-east of Newmanin Western Australia. UGL delivered the first stage of 14locomotives in early 2014, with the first iron ore being mined,processed and transported from Roy Hill in late 2014.

Project: Pacific National Rail MaintenanceClient: Pacific NationalLocation: Spotswood, VICDescription: Operating out of a state-of-the-art heavy haul fleetmaintenance facility in Spotswood, just outside Melbourne, UGL’soriginal $110m contract to upgrade and perform a mid-lifeoverhaul on their fleet of 119 NR Class locomotives over 3 yearswas renewed in 2013 with a $540 million maintenance contractincluding the upgrade and provision of maintenance services for aportion of the PNR locomotive fleet.F

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Case StudiesRail & Defence

Project: UGL Unipart JVClient: Sydney TrainsLocation: Auburn, Sydney, NSWDescription: Capitalising on the combined expertise of UGL,Unipart and MTR, the UGL Unipart JV was initially established tomanage the Level 3 maintenance contract to provide heavymaintenance and supply chain services to 1,050 passenger cars forSydney’s metropolitan fleet. The JV combines UGL’s assetmanagement, maintenance capability and intimate knowledge ofSydney’s passenger rolling stock, Unipart Rail’s internationalexpertise in inventory purchasing and logistics management, alongwith MTR Corporation’s knowledge on maximising assets, toincrease the client’s fleet availability, reliability and safety.

Project: Metro Trains MelbourneClient: Department of Transport, VictoriaLocation: VICDescription: 8 year contract commencing in November 2009 (withoptions for additional 7 years) to operate and maintainMelbourne’s passenger train franchise. UGL is a shareholder inMTM, alongside MTR Corporation and John Holland and thispartnership has expanded their services to the recently awardedNorth West Rail Link in Sydney.

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Case StudiesRail & Defence

Project: ANZAC General Maintenance ContractClient: Defence Materiel Organisation (DMO)Location: Sydney, NSWDescription: The ANZAC GMC is five-year contract to provide shiprepair and maintenance services for the eight Royal Australian NavyANZAC frigates. The contract reflects the capabilities of NSM(Australia) which combines the strength of UGL’s assetmanagement and maintenance capabilities in the defence sectorand Babcock’s international expertise in naval ship sustainment andclass output management.

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Case StudiesTechnology Systems

Project: NWRLClient: Transport for NSWLocation: North West SydneyDescription: In joint venture with MTR Corporation, UGL willdesign and deliver the tunnel systems, rolling stock, rail signallingand overall control systems for the North West Rail Link.Through the Rail division UGL will undertake the operations andmaintenance of the NWRL service for 15 years in joint venture withMTR Corporation and John Holland.

Project: Regional Rail LinkClient: Regional Rail Link Authority (RRLA) of VictoriaLocation: VICDescription: Operating as part of an alliance with Manidis Roberts,Metro Trains Melbourne (MTM), V/Line, and RRLA, UGL hasprovided train control, signaling, telecommunications andpassenger information systems throughout the Regional Rail Linksystem. The Regional Rail Link is a major new rail line in Victoriathat separates regional trains from metropolitan trains increasingcapacity and reliability within the Victorian rail system.F

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Case StudiesTechnology Systems

Project: Richmond to Camberwell Signalling UpgradeClient: Metro Trains MelbourneLocation: Melbourne, VICDescription: Signalling design and construction works for theRichmond to Camberwell Signalling Upgrade Project. This projectwas required to provide necessary improvements to the Richmondto Camberwell rail corridor by undertaking a planned renewalsprogramme aimed at improving the reliability, availability,maintainability and safety of the signalling system, as well asimproving the ongoing asset management of the infrastructure.

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Order Book & Pipeline By Division

Order Book

Pipeline

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Order Book

By delivery structure

By contract type

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