UGL Services Presentation 24 October 2011 FINAL · the United States and India KFPW acquires ... Operational Report - Services 2011 Highlights ... Cassidy Turley Newmark Grubb & Ellis

Full-Year 2011 Results PresentationUGL Services PresentationBob Shibuya, Group President - UGL ServicesMonday, 24 October 2011

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UGL Overview

MarketCapitalisation(as at 21 Oct 11)

Ourvalues

Sectors Geography Customers Services

A service company supporting essential infrastructure, resources and property sectors

safety, integrity, outstanding customer service, teamwork, honesty and openness in communication

• Technology partners• Alliance or

risk-sharing contracts• EPCM• Global coverage• PPPs

• Energy• Rail• Resources• Property• Transport• Water

• Australia & New Zealand

• Asia• Middle East• North America

• Government• Blue-chip companies• Public institutions

• Consulting• Project management• Design• Construction• Fabrication• Operations

& maintenance• Asset management• Facilities management• Corporate real estate

A$2.0bPeople(including contractors) 47,829

Delivery method

Revenue EBIT Order Book

$4.6b $249.4m $8.2b

*figures based on the 2011 financial year

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UGL Business Unit Overview

UGL Infrastructure is a leading provider of design, construction and maintenance services to the water, energy and transport systems sectors in Australia, New Zealand, Asia and North America.

UGL Services provides end-to-end corporate real estate and facilities management services to corporations, governments and institutions in Australia, New Zealand, Asia, North America and the Middle East.

UGL Rail is Australia’s largest and most experienced provider of rolling stock and infrastructure solutions to the passenger and freight rail sectors – and a growing player in the Asian rail industry.

UGL Resources is a leading provider of project delivery and asset services in the mining and mineral processing, oil and gas, chemicals and industrial processing industries.

Revenue$1,066m

EBIT$83.3m

Order Book$1,595m

29%

23%

19%

Revenue$1,250m

EBIT$84.8m

Order Book$2,815m

27%

29%

34%

Revenue$959m

EBIT$44.0m

Order Book$973m

21%

15%

12%

Revenue$1,329m

EBIT$76.5m

Order Book$2,837m

29%

27%

35%

* figures based on the 2011 financial year

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How does UGL Services fit into the UGL Strategy?

Sector Leadership

• Resources• Power• Water• Property• Rail• Transportation

Risk Management

• Robust systems and processes• Alliance and cost-plus contracts• Blue chip and government clients• Sensible, balanced trading terms• Geographic diversification

Financial Strength

• Strong balance sheet• Low capital intensity• Robust cash flow• Flexibility to grow

Sustainable Earnings

• Balanced recurring revenues• Long term capital works alliances• Diverse earnings streams• Strong order book• Solid opportunity pipeline

Market Leadership

• People• Safety• Technology partnerships • Intellectual property • Outstanding customer service

UGLStrategy

Business Positioning

• Exposure tolong term growth trends

• Significant market opportunities• Strong technical component• World class technology• End to end solutions

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UGL Services Global Team

Bob ShibuyaGroup President

North America

George KechesChief ExecutiveBoston

David MontrossChief ExecutiveChicago

ANZ

Henry ArundelChief Executive

ASIA

Michael SuChief Executive

EMEA

Stuart CarmichaelExecutive GeneralManager

GLOBAL INFRASTRUCTURE

Jeff PetersonChief Information Officer

Mary TamakiGlobal Director of Marketing

Caren Shadel-SevilGroup ManagerHuman Resources –Services

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UGL Services Overview Bob Shibuya, Group President - UGL ServicesMonday, 24 October 2011

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UGL Services offers world-class real estate and facilities management services at unparalleled performance levels to corporations, governments and institutions across the globe.

Our client focused, end-to-end solutions model allows us to incorporate real estate advisory, integrated facilities management, project management and sustainability services, with the flexibility and expertise to meet the most exacting of client service needs on a local, regional and global basis.

20,000 employees | 74 offices | 13 countries | Over 9 billion square feet under management

UGL Services – Global Positioning

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UGL acquires Boston-based facilities services business UNICCO Service Company, adding 20,000 employees in North America

1994 1996 1998 2000 2002 2004 2006 2008 2010 2011

Knight Frank and Price Waterhouse establish Knight Frank Price Waterhouse –KFPW

UGL acquires Kilpatrick Green

UGL acquires KFPW

UGL expands into New ZealandMerges KFPW with Kilpatrick Green facilities management business

UGL acquires Singapore-based PremasInternational –expanding into 16 major cities in Asia UGL acquires Chicago-

based corporate real estate business Equis Corporation, establishing a presence throughout the United States and India

KFPW acquires Australian Property Group

Listed on ASX as United Construction Group

History of UGL Services

Rebranded UGL Services

1896Knight Frank founded in London

1849Price Waterhouse founded by Samuel Lowell Price

1949Unicco founded

1984Equis founded

1999Premasfounded

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UGL Services – Service Offering

Who we are today: Integrated RE / FM services provider

Real Estate

• Strategic Consulting• Lease Administration• Site Selection/

Government Incentives

• Transaction Advisory and Brokerage Services

• Portfolio Management

• Corporate Finance• Financial Incentives• Audit and Recovery

Project Management

• Workplace Strategy• Project Management• Move Management• Tenant Improvement• Development

Consulting• Construction

Management• Facility Strategy

Operations and Maintenance

• Utilities• Heating/HVAC• Recycling and Waste

Management• Environmental

Management• Engineering• IT and Telecom• Façade Maintenance

Soft Services

• Janitorial • Exterior Services• Office Services• Logistics• Space Management

Sustainability

• Energy Management

• Environmental Reporting

• Environmental Strategy

• LEED Certification

• Procurement

• Program Delivery

REAL ESTATE INTEGRATED FACILITIES MANAGEMENT

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UGL Services 20,000 Employees13 Countries

Alliance PartnershipsAccess to an additional 290,000 peoplein 65 additional countries

UGL Services Coverage

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Singapore Sports Hub, Singapore353,000 m2 Sports Hub/stadium• Equity partner• Integrated facilities management• Lifecycle management

Rolls Royce, North America70 locations, 650,000 m2• Portfolio and transaction management• Data management• Project management• Audit & Recovery• Integrated facilities management

Sydney Opera House, AustraliaWorld renowned cultural landmark, hosts more than 1 million visitors and 2,500 live performances each year• Building conservation • Operations and maintenance • Sustainability services

Aspire Zone, QatarSports complex: 50,000 seat stadium, sports hall, Academy, aquatic center, orthopedic hospital, mosque, and more• Integrated facilities management• Engineering and maintenance• Energy management• Project management• Call center operations

Chrysler, North America205 locations, 73.4 million m2• Portfolio and transaction management• Data management• Audit & Recovery• Integrated facilities management

Zurich, North America441 locations, 827,000 m2• Portfolio management• Transaction advisory• Strategic consulting• Integrated facilities management• Project management

Representative Projects

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Client Advocate Scores 2011 Overall% of Advocates

UGL Services 72.0%

Jones Lang LaSalle 52.5%

CB Richard Ellis 28.0%

NAI Global 19.2%

DTZ 19.0%

UGL Services ranks the #1 most recommended corporate real estate firm

The Watkins Research Group, Inc., in a joint project with Flaspöhler Research Group, conducted interviews with 208 corporate real estate decision makers. The survey evaluated 23 corporate real estate service providers and identified key considerations in selecting these providers.

For each firm a respondent said they used we asked,

“How likely are you to recommend (firm used) to a business associate or colleague?

10 most used factors UGL’s RankDelivers results on time and within budget 1Is business “savvy” 2Understand and avoids conflicts of interest 1Adapts service to fit my firm’s needs and culture 1Financial strength 5Pricing is rational 1Has a strong and respected reputation 5Monitors performance with metrics 3Uses State of the Art technology 4Has offices where I need them 4

The 10 most used factors to evaluate “what’s best for my situation”.

UGL Services ranks in the top 5 for all 10 factors and #1 in 4 of them

Leaders in Customer Satisfaction

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Operational Report - Services

2011 Highlights• Successful expansion in the Middle East and

China• Excellent performance from Asia-Pacific• Continued turnaround in the US Corporate

Real Estate business• Ongoing improvement in Australia and New

Zealand • Stable revenue and earnings contribution

2012 Outlook• US turnaround expected to deliver solid

growth• Middle East has further expansion prospects• Australian, NZ and Asian businesses in

excellent shape• Outsourcing trend will gather pace

$m FY11 FY10 Change

EBIT $m

Sales - $m 1,328.9 1,361.9 (2%)

EBIT - $m 76.5 71.5 7%

EBIT / Sales 5.8% 5.2%

Order book - $b 2.8 2.8 -

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Market Outlook

Uncertainty on the horizon

“Consumer confidence at Great Recession level”

August, 29, 2011, CNN World

“Pent up commercial demand due to release”

September 2, 2011, Brokernews.com / ANZ

“Strong outlook for Asia Pacific office markets”

August 4, 2011, Propertywire

“UK FM sector looks overseas for opportunity”

July 2, 2011, FM World

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• Flight to Quality

• Consolidation of service provider relationships

• Outsourcing increasingly popular

• Global tenders becoming more prevalent

Market Trends and Issues

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Impact on Property Services Industry

• Consolidation of property services industry

• Strategic alliances on the rise

• Delay and downsizing of occupancy lease/purchase commitments

• Technology infrastructure costs drive smaller firms out of Accounts business

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Evolution of IFM and RE Sourcing

Pre-1980s 80s toMid-90s

Mid-90s To 2000

Early 2000sTo mid-2000s

Mid-2000sAnd onward

Most, if not all, activities are performed in-house.

Self-perform Out-tasking Outsourcing Integrated facilities management

Global integrated business services

Low-tech services such as cleaning, security, food services and landscaping are individually sourced by different locations to external providers

A combination of low-tech and high-tech services – such as electrical, mechanical-are outsources in service bundles

Facilities management and real estate services are outsourced to a single service provider, which manages subcontractors

Facilities management and real estate services are organizationally aligned with other support services such as finance, HR, procurement and IT –and outsourced in a global bundle across business units. Bundled business process outsourcing (BPO) across multiple functions is emerging as an option

Source: KPMG 2011 Real Estate and Facilities Management Outsourcing Pulse Survey

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Size of Market

62%United States

18%Europe

20%Asia

$5.1BCBRE $3.2B

JLL $4.2BJCI

$1.8BC&W

$1.4BUGL

$1.1BColliers

$107BAll Others

Estimated revenue = $125 billion (US$)

2010 Market Share by Revenue2010 Global Market

Source: UMS Advisory Source: Public Information

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Global/Controlled

Local/Alliance

Coverage

Narrow

Jones Lang LaSalleCB Richard Ellis

C & W

UGL

CresaPartnersStudley

BroadScope of Services

DTZSavills

Cassidy TurleyNewmark

Grubb & Ellis

Colliers

Knight FrankBNP

GVAAOS

Competitive Position – Real Estate

Key Attributes

• Global Coverage

• Single Brand

• Majority/Equity Ownership

• Full Service

Real Estate Services – Key Players

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ABMCarillionCBREDalkiaEmcor

FluorJohnson ControlsJones Lang LaSalle

Competitive Landscape – FM

Global FM market is dominated by bundled and I-FM service providers, with majority of the large players operating across multiple countriesFM market is mostly ruled by bundled and I-FM service providers, with FM services forming just a small part of their overall portfolio; top players are generally engaged in a myriad of industrial and economic business sectors, ranging from energy and construction services to FM and consultancy services.

Service Integration

I-FM Service Providers.

Provide the entire gamut of FM services, including cleaning,

support, property, catering and security services, to public and

private sector clients.

Bundled Service Providers.

Provide a set of five or more FM related services, such as support services, property management,

security services, technical maintenance and waste

management. They may enter into strategic partnerships to provide

the complete spectrum of services.

Single Service Providers.

Provide single FM related service, such as support

services or specialized software for FM. Generally, these

companies are relatively small in size with limited geographic

presence.

Bundled and I-FM service providers are global players operating in a broad array of industries, in addition to FM services, such as:• Health, Energy, Science, Transport, Real Estate, Natural Gas, Construction, Home Affairs, Infrastructure and Government Services

Source:Company Websites; TSC Research and AnalysisService Integration

AramarkBilfinger+BergerISSMitieSerco

SodexoUGL Services

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REFM Outsourcing Usage Trends

Source: KPMG 2011 Real Estate and Facilities Management Outsourcing Pulse Survey

Workplace services

Facilities services

Transactions/brokerage

Lease administration

Project mgt ($20M+)

Facilities management

Project mgt(<$20M)

Space management

Real estate and facilities IT

Portfolio strategy/planning

60%

48%

46%

33%

26%

24%

20%

16%

11%

27%

37%

30%

28%

33%

47%

50%

43%

32%

22%

7%

11%

20%

30%

33%

22%

24%

36%

48%

72%

Currently fully outsourced Currently partially outsourced No plans to outsource

Planning to outsource innext 12 months

Planning to outsource 12+ months out

Current REFM outsourcing usage and market demand conditions

Key Findings• Most commonly outsourced REFM

process area is workplace services• The second most frequently outsourced

area is facilities, e.g. HVAC, electrical, mechanical, building repair

• REFM portfolio strategy and planning was the least often outsourced area

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Strategy

Consolidate and build brand UGL

Opportunity Target Objective

Premas, Equis and Unicco have transitioned from sub-brands to divisions

Progress-to-date

Leverage existing client relations

Deliver integrated RE and FM consistently throughout the world

Optimize efficiency and best practices

Grow profitably at 10%+

Consolidate sale and client management teams

Establish best-in-class platforms in Europe and Asia

Develop global leadership team

Expand into new geographic markets and service sectors

Search for new global sales and client management leadership underway

Active discussions with people and firms in target markets

New CIO, new marketing director, inbound CFO/COO

Active M&A pipeline and recruitment of high-profile firms, teams and individuals

Global Strategy

Become a top three global property service provider

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Q&A

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Important Notice

This presentation and any oral presentation accompanying it:

• is not an offer, invitation, inducement or recommendation to purchase or subscribe for any securities in UGL Limited (“UGL”) or to retain any securities currently held;

• is for information purposes only, is in summary form and does not purport to be complete;

• is not intended to be relied upon as advice to investors or potential investors and does not take into account the investment objectives, financial situation or needs of any particular investor, potential investor or any other person. Such persons should consider seeking independent financial advice depending on their specific investment objectives, financial situation or needs when deciding if an investment is appropriate or varying any investment;

• may contain forward looking statements. Any forward looking statements are not guarantees of future performance. Any forward looking statements have been prepared on the basis of a number of assumptions which may prove to be incorrect or involve known and unknown risks, uncertainties and other factors, many of which are beyond the control of UGL, which may cause actual results, performance or achievements to differ materially from those expressed or implied in such statements. There can be no assurance that actual outcomes will not differ materially from these statements. Any forward looking statement reflects views held only as of the date of this presentation. Subject to any continuing obligations under applicable law or any relevant stock exchange listing rules, UGL does not undertake any obligation to publicly update or revise any of the forward looking statements or any change in events, conditions or circumstances on which any such statement is based.

No representation or warranty, express or implied, is made as to the fairness, accuracy, completeness or correctness of the information, opinions and conclusions contained in this presentation and any oral presentation accompanying it. To the maximum extent permitted by law, UGL and its related bodies corporate, and their respective directors, officers, employees, agents and advisers, disclaim and exclude all liability (including, without limitation, any liability arising from fault or negligence) for any loss, damage, claim, demand, cost and expense of whatever nature arising in any way out of or in connection with this presentation and any oral presentation accompanying it, including any error or omission therefrom, or otherwise arising in connection with any reliance by any person on any part of this presentation and any oral presentation accompanying it.

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