Year End Preliminary Results – September Preliminary Results Presentation, Year to 30 th June 2008 Greg Fitzgerald - Chief Executive Frank Nelson - Finance Director

Year End Preliminary Results – September This presentation is being made only to and is directed at (a) persons who have professional experience in matters relating to investments falling within Article 19(1) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (the “Order”) or (b) any other persons to who it may otherwise lawfully be communicated, falling within Article 49(2) of the Order (all such persons being referred to as “relevant persons”). Any person who is not a relevant person should not act or rely on this presentation or any of its comments. The financial information set out in this document does not constitute the Company’s statutory accounts. Statutory accounts for 2007, which received an auditors’ report that was unqualified and did not contain any statement concerning accounting records or failure to obtain necessary information and explanations, have been filed with the Registrar of Companies. Disclaimer

Year End Preliminary Results – September Agenda Key Highlights Financial Overview Operating Review Summary and Outlook

Year End Preliminary Results – September Key Highlights

Year End Preliminary Results – September Key Highlights Record profits in difficult economic environment Excellent performance from Building, Infrastructure and Affordable Housing Total housing completions up on previous year despite market conditions Housebuilding supported by strength in Affordable Housing

Year End Preliminary Results – September Key Highlights Linden integration complete - savings ahead of forecast Acquisition of Kendall Cross Industry leading Health and Safety performance Management succession implemented Financial strength improved

Year End Preliminary Results – September Key Highlights New Structure and Succession

Year End Preliminary Results – September Financial Overview

Year End Preliminary Results – September Group revenue £1,832m, up 30% Profit before tax Pre exceptional £71.8m, up 35% Post exceptional £60.3m, unchanged Earnings per share Pre exceptional 13.6p, up 9% Post exceptional 11.4p, down 20% Net Debt at 30 June 2008, £2m (2007: £99m) Total Dividend 3p, unchanged Return on average shareholders’ funds, 19% (2007: 28%) Highlights Financial Overview

Year End Preliminary Results – September Total Bank Facility £450m £300m until 2012 £150m amortising to £90m in 2012 Significant headroom over projected requirements Projections well within banking covenants Substantial contract bonding facilities Rigorous working capital management Financing Financial Overview

Year End Preliminary Results – September Goodwill and Exceptional Items Linden Goodwill £52.3m Strategic purchase adding critical mass to South East Synergy savings achieved £3m Additional purchasing power Brand and office bases intact Impairment calculations support carrying value Conservative profit recognition Exceptional Items £11.5m Restructuring costs £2.4m Land write downs and abortive costs £9.1m Independent valuations on substantial part of portfolio Independent review of build costs Provisions on sites with negative margins Overall assessment against a break even contribution Financial Overview

Year End Preliminary Results – September Income Statement £m Revenue1,831.91,409.7 Profit from operations* JV interest and tax(4.7)(0.3) Profit before finance costs, amortisation and exceptionals Intangibles amortisation(2.0)(1.4) Profit before exceptionals and finance costs Net finance costs(10.8)(8.1) Profit before exceptionals Exceptional items - land write downs and abortive costs(9.1)- - restructuring costs(2.4)(1.9) - property rationalisation pensions, actuarial gain-5.2 Profit before tax * Profit from operations is stated before finance costs, exceptional items, amortisation and share of joint ventures’ interest and tax Financial Overview

Year End Preliminary Results – September Segmental Analysis to 30 th June 2008 – Profit from Operations Revenue (including JVs) £m Profit/(Loss) £m Building Infrastructure Construction1, PPP Investments (1.1) Affordable Housing & Regeneration Housebuilding Group (6.9)(7.1) 1,868.71, Intangibles amortisation(2.0)(1.4) Less JV interest and tax(4.7)(0.3) Net interest payable(10.8)(8.1) Profit before exceptionals Exceptional items(11.5)7.2 Profit before tax Financial Overview

Year End Preliminary Results – September Segmental Analysis to 30 th June 2008 – Profit Before Tax Revenue (including JVs) £m Profit/(Loss) £m Building Infrastructure Construction1, PPP Investments (1.4) Affordable Housing & Regeneration Housebuilding Group ,868.71, Intangibles amortisation(2.0)(1.4) Less JV interest and tax(4.7)(0.3) Profit before exceptionals Exceptional items(11.5)7.2 Profit before tax Financial Overview

Year End Preliminary Results – September Share of the Cake – Profit Before Tax Excludes Group and PPP Investments Financial Overview

Year End Preliminary Results – September Finance Costs - Net 2008 £m 2007 £m Net interest payable On unwinding of discount on creditors Net return on asset of pension fund(0.9)0.7 Other(0.9) Financial Overview

Year End Preliminary Results – September Balance Sheet Highlights Shareholders’ funds £m * Net debt £m(1.7)(98.7) Gearing0.5%32% Interest cover - total (IFRS)6.6 x8 x - bank8.4 x23 x Land £m Work in progress £m Land creditors £m **(76.5)(145.5) Deferred payment – Linden & Chartdale £m(0.8)(43.9) * Includes £19.7m net pension deficit (2007: £18m) ** Excludes JV commitments Financial Overview

Year End Preliminary Results – September £m 2007 £m Operating cash flow Interest, tax and dividends(37.8)(25.4) Net proceeds from issue of shares Acquisitions (net of cash acquired)(6.1)40.1 Repayment of borrowings acquired-(261.0) Proceeds from sale of fixed assets * Capital expenditure and investments(10.7)(4.7) Other1.4(40.7) Net cash (outflow)/inflow97.0(114.7) Opening net cash/(debt)(98.7)16.0 Closing net (debt)/cash(1.7)(98.7) Cash Flow Summary * Includes proceeds from sale and leasebacks Financial Overview

Year End Preliminary Results – September Operating Review - Building

Year End Preliminary Results – September Operating Review - Building Margin reflects upper quartile performance Strong performance from all business units FM business consolidated Market conditions becoming more challenging Secured 82% of current year’s workload Key Highlights

Year End Preliminary Results – September Operating Review - Building Major contracts proceeding well Geographic coverage increased Encouraging pipeline of Public Sector opportunities Profits conservatively reported Strong cash generation Key Highlights

Year End Preliminary Results – September Forward Order Book: August 2008 Sectors£m Health114 Education87 Prisons121 Commercial172 Interiors55 FM151 Other Public Sector Operating Review - Building Excludes Affordable Housing

Year End Preliminary Results – September Operating Review - Infrastructure

Year End Preliminary Results – September Operating Review - Infrastructure Margin reflects upper quartile performance Strong market conditions, despite economy Organic growth of over 38% Industry leading performance in Water Secured 80% of current year’s workload Key Highlights

Year End Preliminary Results – September Operating Review - Infrastructure Development and growth of Renewables capability Good progress on Whitelee Windfarm and Olympic contracts Secured 25% share of the £445m M74 Highways project Excellent customer satisfaction results Strong cash generation Key Highlights

Year End Preliminary Results – September Operating Review - Infrastructure Forward Order Book: August 2008 Sectors£m Water396 Highways268 Flood Alleviation102 Rail 20 Waterways 15 Remediation 93 Communications 23 Renewable Energy 9 International 12 Ground Engineering 4 942

Year End Preliminary Results – September Operating Review - Investments

Year End Preliminary Results – September Operating Review - Investments Secondary markets remain strong Worcester Library –shortlist in the Autumn Maghull & Belmarsh prisons – bids to be submitted early October with G4S Directors’ valuation shows uplift of £11.1m Key Highlights

Year End Preliminary Results – September Operating Review - Affordable Housing and Regeneration

Year End Preliminary Results – September Key Highlights Operating Review - Affordable Housing and Regeneration Award of £25m of Housing Corporation Grant Enhanced revenues achieved Intermediate market vehicle established 11% of speculative sales made to RSLs Excellent relationships with Housing Corporation and English Partnerships

Year End Preliminary Results – September Operating Review - Affordable Housing and Regeneration Key Highlights Kendall Cross acquisition Major regeneration schemes in Grimsby and Plymouth progressing well Increased number of frameworks Market fundamentally strong but RSLs becoming risk adverse

Year End Preliminary Results – September Key Statistics: including share of joint ventures Operating Review - Affordable Housing and Regeneration 12 months to June Inc/(Dec)% Units Total % - Affordable % - Regeneration161162(1)% Av. Selling Price £000 Total123130(5)% -Affordable % - Regeneration % Revenue £m Total % - Affordable % - Regeneration % - Contracting % Profit from Operations £m % Margin %6.0%4.8% In hand position Aug 08 £m - Afford. & Regeneration87809% - Contracting Order Book % Land bank Aug 08 units3,5003,600(3)%

Year End Preliminary Results – September Operating Review - Housebuilding

Year End Preliminary Results – September Market Conditions Operating Review - Housebuilding Extremely difficult market Visitor numbers reduced High cancellation rate Mortgage availability and consumer confidence key constraints Consortium sites and apartments worst affected Improved supply chain availability

Year End Preliminary Results – September Key Highlights Operating Review - Housebuilding Aggressive sales policy proving to be correct Cost base reduced by £12m per annum Substantial build savings achieved Reduced land bank Strong focus on cash management

Year End Preliminary Results – September Key Highlights Operating Review - Housebuilding Part exchange exposure under tight control Minimal exposure to consortium sites Linden integration complete Industry leading customer satisfaction Solid operational performance in extremely difficult market

Year End Preliminary Results – September Operating Review - Housebuilding Key Statistics pre exceptionals - including Joint Ventures 12 months to June Increase/ (Decrease) % Units1,8301,20951 Average Selling Price £ (9) Revenue £m Profit from operations £m Margin %11.1%14.5% ROCE *14.3%19.5% In hand position August 08 £m126243(48) Land bank August 08 units5,4007,600(29) Strategic land August 08 acres1,4301,508(5) * Includes housebuilding and affordable housing and regeneration

Year End Preliminary Results – September Market Outlook Operating Review - Housebuilding No improvement expected in short term Encouraging sales levels achieved over summer Very prudent land procurement policy Continue to reduce exposure to apartments Strong relationship with Affordable Housing sector continues Fundamentals remain strong

Year End Preliminary Results – September Summary and Outlook

Year End Preliminary Results – September Summary and Outlook Market conditions for next 12 months Housing to remain extremely difficult Affordable Housing growth to pause Building sector to become more challenging Infrastructure to remain strong Aggressive housing sales policy to continue Hybrid model working well Group well placed in testing times Strong and focused management team

Year End Preliminary Results – September Preliminary Results Presentation Year to 30 th June 2008

Year End Preliminary Results – September Appendix 1 Office Locations