Annual Results and Rights Issue Presentation – 10 September Annual Results for Year to 30 June 2009 and Rights Issue Presentation Greg Fitzgerald Chief Executive, Frank Nelson Finance Director Centre Court, Wimbledon

Annual Results and Rights Issue Presentation – 10 September Disclaimer Sub- Heading This presentation is being made only to and is directed at 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 any other persons to who it may otherwise lawfully be communicated (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 comments made during the presentation. This presentation does not constitute or form part of, and should not be construed as, any offer or invitation to subscribe for, underwrite or otherwise acquire, any securities of the Company or any member of its group nor should it or any part of it form the basis of, or be relied on in connection with, any contract to purchase or subscribe for any securities in the Company or any member of its group or any commitment whatsoever. This presentation does not purport to contain all the information that may be required to evaluate any proposed transaction and should not be relied on in connection with any such potential transaction. Any recipient hereof should conduct its own independent analysis of the Company. Recipients should note that the Company will not update or otherwise revise this presentation. The financial information set out in this document does not constitute the Company’s statutory accounts. Statutory accounts for the financial year ended 30 June 2008, 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.

Annual Results and Rights Issue Presentation – 10 September Agenda Highlights Financial Overview Operating Review Rights Issue Summary and Outlook

Annual Results and Rights Issue Presentation – 10 September Highlights Wigan Wastewater Treatment Works, Greater Manchester

Annual Results and Rights Issue Presentation – 10 September Highlights Net cash at period end £34m Comprehensive and competitive financing arrangement in place Significant cost reductions achieved Exceptional housing write down of £51.4m Housing market conditions are stabilising with carry forward position up 7% Relatively short land bank with 1,100 additional plots acquired in year

Annual Results and Rights Issue Presentation – 10 September Highlights Housebuilding return to 5 day working week Strong relationships in affordable housing and regeneration sectors Record performance from construction in difficult market conditions Construction order book maintained, with 84% in public and regulated sector Hybrid model continues to work well Underwritten Rights Issue of £119m (net of expenses) announced today to recommence expansion in housebuilding

Annual Results and Rights Issue Presentation – 10 September Highlights Group Structure Well positioned Housebuilding business in recovering market, with transformational opportunity Leading Construction business operating in difficult market

Annual Results and Rights Issue Presentation – 10 September Financial Overview The Blade, Reading

Annual Results and Rights Issue Presentation – 10 September Financial Overview Highlights – Year to 30 June Group revenue £1,461m£1,832m Profit/(loss) before tax Pre exceptional £24.5m£71.8m Post exceptional £(26.9m)£60.3m Earnings/(loss) per share Pre exceptional 4.9p13.6p Post exceptional (4.8)p11.4p Cash/(debt) at 30 June £34m(£2m) Total dividend per share1.5p3.0p

Annual Results and Rights Issue Presentation – 10 September Financial Overview Funding Position Total bank facility £426m £300m until 2012 £126m amortising to £96m in 2012 Club arrangement with HSBC/RBS/Barclays/BoS Group has operated within banking covenants and avoided need to renegotiate facilities Cost of borrowing provides competitive advantage Substantial contract bonding facilities IAS net pension fund deficit £20m Rigorous working capital management Rights Issue provides additional flexibility for growth

Annual Results and Rights Issue Presentation – 10 September Financial Review Income Statement £m Revenue1,461.21,831.9 Profit from operations JV tax2.7(0.8) Intangibles amortisation(2.0) Profit before finance costs Net finance costs(7.4)*(10.8) Profit before exceptional items Exceptional items - land write downs and abortive costs(50.4)(9.1) - restructuring costs(1.0)(2.4) (Loss)/profit before tax(26.9)60.3 * £3.5m charge relates to fair value movement on interest rate swap (2008 £0.7m)

Annual Results and Rights Issue Presentation – 10 September Financial Review Segmental Analysis: Profit from Operations Revenue ( including JVs) Profit/(Loss) £m Building Infrastructure Construction1,062.91, PPP Investments Affordable Housing & Regeneration Housebuilding Group0.50.3(6.0)(6.9) 1,510.31, *85.4* Intangibles amortisation(2.0) Less JV tax2.7(0.8) Net finance costs(7.4)(10.8) Profit before exceptional items Exceptional items(51.4)(11.5) (Loss)/profit before tax(26.9)60.3 *Profit from operations

Annual Results and Rights Issue Presentation – 10 September Financial Review Finance Costs - Net £m Net interest payable Fair value losses on financing activities - interest rate swaps On unwinding of discount on creditors Net cost/(return) on asset of pension fund0.8(0.9) Other(0.1)(0.9)

Annual Results and Rights Issue Presentation – 10 September Financial Review Balance Sheet Highlights Shareholders’ funds £m294.6*325.3* Net cash/(debt) £m34.1(1.7) Gearingn/a0.5% Interest cover - total (inc IFRS and swap)**4.3 x7.6 x - bank19.9 x13.1 x Total Land £m Work in progress £m Land creditors £m(32.8)(76.5) Net Developments Deferred payment – Linden Homes & Chartdale £m-(0.8) * Includes £20m net pension deficit ( June 2008: £20m) ** Calculated on profit before finance costs and exceptional items

Annual Results and Rights Issue Presentation – 10 September Financial Review £m Operating cash flow Interest, tax and dividends(12.1)(37.8) Net proceeds from issue of shares-0.3 Capital expenditure and investments0.5(12.6) Other-(2.5) Net cash inflow Opening net debt(1.7)(98.7) Closing net cash/(debt)34.1(1.7) Cash Flow Summary

Annual Results and Rights Issue Presentation – 10 September Operating Review Housebuilding Division The Gateway, Cambridgeshire

Annual Results and Rights Issue Presentation – 10 September Operating Review – Housebuilding Division Market Conditions Mortgage availability remains a key constraint House price deflation from peak to trough circa 27% Market conditions stabilising Visitors levels improving Discounts and incentives reduced Cancellation rates at historically low levels Opportunities for land acquisition increasing

Annual Results and Rights Issue Presentation – 10 September Operating Review – Housebuilding Division Highlights Aligned the business for current market conditions Return to 5 day week Aggressive sales policy maintained Land spend and work in progress remains strictly controlled Use of shared equity reduced Geographical coverage and core competencies maintained

Annual Results and Rights Issue Presentation – 10 September Operating Review – Housebuilding Division Highlights Exposure to apartment market reduced Renegotiation of existing planning approvals ongoing Stock property and part exchange levels at historically low levels Industry leading customer satisfaction maintained

Annual Results and Rights Issue Presentation – 10 September Operating Review – Housebuilding Division Key Statistics Pre Exceptionals: Including Share of Joint Ventures Units1,2161,830 Average Selling Price £ Income per sq. ft £ Revenue £m Profit from operations £m * Margin %1.5%10.9% ROCE % **2%14.0% Sales carried forward £m7464 Current land bank - plots4,7005,400 Current strategic land - acres1,3001,430 * Re-stated **Includes private housing, S106 and regeneration (excluding contracting)

Annual Results and Rights Issue Presentation – 10 September Operating Review – Housebuilding Division Outlook Encouraging start to the year Rate of sales Income achieved Cancellation rate Significant land market activity Mothballed developments recommencing Well positioned to take advantage of opportunities

Annual Results and Rights Issue Presentation – 10 September Operating Review Affordable Housing and Regeneration Division South Gate, Totnes

Annual Results and Rights Issue Presentation – 10 September Operating Review – Affordable Housing and Regeneration Division Highlights Leading development partner with HCA Growth in value of National Affordable Housing Programme to £80m £9m (361 plots) HomeBuy Direct awarded Shortlisted for £28m HCA Kickstart funding – 4 th largest developer allocation Well positioned for further HCA funding

Annual Results and Rights Issue Presentation – 10 September Operating Review – Affordable Housing and Regeneration Division Highlights RSL clients’ confidence beginning to return Major regeneration schemes restructured Frameworks with RSLs increased Partnering opportunities with RSLs Opportunities to cross sell Facilities Management

Annual Results and Rights Issue Presentation – 10 September Operating Review – Affordable Housing and Regeneration Division Key Statistics: Including Share of Joint Ventures UnitsAffordable Regeneration Total Av. Selling Price £000Affordable Regeneration Total Revenue £mAffordable Regeneration Contracting Total Profit from Operations before exceptionals £m * Margin %3.4%5.7% Sales carried forward £m87 Contracting Order Book £m Current land bank - plots3,1503,500 * Re-stated

Annual Results and Rights Issue Presentation – 10 September Operating Review Building Division Newton Community Hospital, NHS LIFT, Merseyside

Annual Results and Rights Issue Presentation – 10 September Operating Review – Building Division Highlights Industry leading performance Difficult market conditions Decline in Government spending anticipated £140m of recent awards in health, education and commercial Secured 80% of current year’s workload

Annual Results and Rights Issue Presentation – 10 September Operating Review – Building Division Highlights Secured Scottish NHS Framework position Awarded ‘Big Build’ by Rutland County Council Steady flow of projects being negotiated through NHS LIFT partnerships St Pancras project performing well Successful delivery at Wimbledon with follow on contract negotiated Excellent cash generation

Annual Results and Rights Issue Presentation – 10 September Operating Review – Building Division Current Order Book Sectors£m Health113 Education123 Prisons97 Commercial137 Interiors58 FM140 Other Public Sector62 730* * Note: Excludes Affordable Housing and Regeneration

Annual Results and Rights Issue Presentation – 10 September Operating Review Infrastructure Division M40, Warwick

Annual Results and Rights Issue Presentation – 10 September Operating Review – Infrastructure Division Highlights Industry leading performance Very competitive market Decline in Government spending anticipated Established a presence in Qatar Secured 70% of current year’s workload

Annual Results and Rights Issue Presentation – 10 September Operating Review – Infrastructure Division Highlights AMP 5 procurement ongoing – two renewals secured Awarded further Framework from the Olympic Delivery Authority beyond 2012 Secured Network Rail’s Enhancements Framework Excellent performance on the M74 Good progress on Renewables Excellent cash generation

Annual Results and Rights Issue Presentation – 10 September Operating Review – Infrastructure Division Current Order Book Sectors£m Water353 Highways245 Flood Alleviation83 Rail75 Waterways26 Communications15 Renewable Energy36 International11 844

Annual Results and Rights Issue Presentation – 10 September Operating Review Investments Division Millburn Academy, Inverness

Annual Results and Rights Issue Presentation – 10 September Operating Review – Investments Division Highlights Projects performing well, all now in operational phase Successfully completed investment sales MOD Housing, Portsmouth Highland Schools (post year end) Preferred bidder on Worcester Library and History Centre Shortlisted on South Tyne & Wear Waste Pipeline of future projects in waste, health and housing sectors

Annual Results and Rights Issue Presentation – 10 September Rights Issue – The Rationale Water Colour, Surrey

Annual Results and Rights Issue Presentation – 10 September Rights Issue – The Rationale The Opportunity The strategic expansion of our Southern based Housebuilding business

Annual Results and Rights Issue Presentation – 10 September Rights Issue – The Rationale Liquidity returning at substantially lower prices Fewer housebuilders able to pursue land opportunities Extensive land pipeline already in place Since July 2008, 1,100 plots added to landbank (£28m) Agreed terms on further 1,400 plots (£74m) Offers pending on 4,200 plots (£180m) Negotiating on a number of special projects with potential partners Expect to generate attractive margins and ROCE Profitable Pipeline of Land Opportunities

Annual Results and Rights Issue Presentation – 10 September Rights Issue – The Rationale Geographic coverage and strong infrastructure in place Core competencies of land buying and planning maintained Excellent relationships with the HCA (UK’s largest land owner) and RSLs Strict controls on expenditure of capital Phased deployment of capital Favourable contract terms Build costs staggered Targeted volumes represent small share of the UK new build market Minimising Execution Risk

Annual Results and Rights Issue Presentation – 10 September Rights Issue – The Rationale Enables a substantial growth opportunity for Housebuilding Impact on Earnings Per Share* Dilutive to 2011 Materially enhancing 2012 onwards Improves and extends financial flexibility Final dividend for year ended 30 June 2009 of 1.05p per share Future dividends will be adjusted for the bonus element of rights issue and share consolidation Financial Impact *These statements should not be construed as a profit forecast or be interpreted to mean that the future earnings per share, profits, margins or cash flows of the Group, taking into account the effect of the Rights Issue and the Share Consolidation, will necessarily be greater than the historic published earnings per share, profits, margins or cash flows of the Group.

Annual Results and Rights Issue Presentation – 10 September Rights Issue – The Rationale Rights Issue - Key Statistics Issue Size Approximately £125m gross, £119m net of expenses Key Dates 10 Sept 09: 6 Oct 09: Close at 6 Oct 09: 7 Oct 09: 22 Oct 09: Transaction announcement and preliminary results EGM Share Consolidation record date Dealings in new shares nil paid commence Admission and commencement of dealings in new shares Share Consolidation 1 for 10 share consolidation Directors’ IntentionsGreg Fitzgerald David Calverley 3 Non Execs Frank Nelson Ken Gillespie Ian Baker Richard Barraclough £500k (minimum) + tail swallow £ 50k + tail swallow Fully take up rights £ 60k + tail swallow £ 25k + tail swallow

Annual Results and Rights Issue Presentation – 10 September Summary and Outlook Museum of Liverpool

Annual Results and Rights Issue Presentation – 10 September Summary and Outlook Group in sound financial position Housebuilding business well positioned for recovery Construction business performing well in difficult market Opportunity to strategically expand the size of Housebuilding business profitably Investment of rights issue proceeds expected to generate material earnings enhancement from 2012* *This statement should not be construed as a profit forecast or be interpreted to mean that the future earnings per share, profits, margins or cash flows of the Group, taking into account the effect of the Rights Issue and the Share Consolidation, will necessarily be greater than the historic published earnings per share, profits, margins or cash flows of the Group.

Annual Results and Rights Issue Presentation – 10 September “be”, Newhall Annual Results for Year to 30 June 2009 and Rights Issue Presentation Greg Fitzgerald Chief Executive, Frank Nelson Finance Director