Jarvis plc2007 Half Year Results Presentation

27 November 2007

2

Group Financial Highlights

2007 £m

2006 £m

Revenue*

(Loss)/Profit before tax*

Loss for the period

Net cash used in operating activities

Net debt

Loss per share

* Continuing operations

136.3 143.5

(0.6) 0.5

(2.5) (11.6)

(19.1) (25.6)

(41.4) (45.8)

(1.2)p (7.5)p

3

First Half Financial Performance

– Loss before tax in first half ahead of management budget expectations

– Underperformance in Plant offset by additional volume and margin in Rail, and additional central costs and interest savings, compared to budget

– Net debt at 30 September circa £5m higher than budget, mostly due to earlier than anticipated settlement of historic provisions

4

Group Segmental Analysis - Revenue

2007 £m

2006 £m

Rail 75.3 66.8 12.7%

Plant 40.8 51.8 - 21.2%

Accommodation Services 34.4 41.5 - 17.1%

Eliminations (14.2) (16.6)

Total 136.3 143.5 - 5.0%

5

Revenue Analysis - Rail

2007 £m

2006 £m

Track Renewals 39.7 35.7

Enhancement Projects 28.7 21.7

Electrical Projects 11.2 15.6

Other/eliminations (4.3) (6.2)

Total 75.3 66.8

- Increased enhancement project volumes in second quarter driven by Rugby Remodelling contract

- Electrical project volumes down due to delay in awards of Category C signalling contracts

6

Revenue Analysis - Plant

2007 £m

2006 £m

On Track Machines 15.0 19.2

Specialist Plant 6.3 6.6

Small Plant 8.5 9.9

Transport 11.0 16.1

Total 40.8 51.8

- Reduced volumes on heavy duty machines in OTM

- Small plant reduced external sales matched by lower costs

- Transport turnover reduced following expiry of ‘back to back’ lease contracts with major client

7

Revenue Analysis – Accommodation Services

2007 £m

2006 £m

Facilities Management 30.5 31.1

Construction 3.9 10.4

Total 34.4 41.5

8

Group Segmental Profit Analysis*

2007 £m

2006 £m

Rail 5.2 5.9

Plant 2.4 6.0

Accommodation Services (1.4) 1.0

Central costs (5.9) (10.6)

Operating profit 0.3 2.3

Net finance costs

(Loss)/Profit before tax

(0.9)

(0.6)

(1.8)

0.5

* Before exceptional items

9

Shareholders’ equity

30 Sept 07

£m

2 April 07

£m

Share capital 10.2 10.2

Share premium 60.7 581.4

Special reserve 3.7 -

Capital redemption reserve 7.2 7.2

Other reserve 89.7 89.7

Accumulated losses (188.2)

(702.8)

Equity shareholders’ deficit (16.7) (14.3)

10

Net Debt

30 Sept 07 £m

2 April 07

£m

Cash 4.9 27.6

Borrowings due within one year (14.2) (18.3)

Borrowings due after one year (32.1) (32.9)

Total (41.4)

(23.6)

11

Working Capital Facility

– Asset backed facility secured on plant and receivables

– Maximum loan originally £67m

– Current maximum loan, after amortisation and repayments following disposals, is £63.9m

– Further amortisation in equal instalments to June 2008 of £2.1m

– Loan also subject to reduction on any future asset disposals

– Facility expires July 2009

– Blended average interest rate approximately 11%

– Rolling 12 month EBITDA financial covenant (absolute amount). No breaches anticipated

12

Movement in Net Debt +

£m

Net Debt 2 April 2007 (23.6)Underlying EBITDA (2.4)Working capital movements (7.4)Legacy provision settlements (4.2)Redundancy payments (1.8)Capital expenditure (1.1)Interest costs (2.8)Proceeds from business disposals 1.9Net Debt at 30 September 2007 (41.4)

+ Un-audited extract from group management accounts

13

Rail

– Selected by Network Rail as one of their 4 preferred suppliers for track renewals

– Workload has picked up during the second quarter as expected and volumes in the second half are secure

– Reduced revenue in signalling business as the Category C workload has not come through as anticipated

– Completed 200 yards of track in 8 hours at Heaton Sidings proving that we can achieve “7 Day Railway” targets

14

Plant

– Utilisation pattern for On Track Machines causing difficulty

– Limited visibility and mix of plant demand on new rail work

– Small plant revenues impacted by 6-4 competition, but costs reduced in line

– Transport – reduced volumes following major contact expiry

– Specialist plant has performed ahead of expectation

– Continue to develop and invest in new products

15

Accommodation Services

– Terminated 3 significant loss making contracts in October (plus 1 profitable

contract for geographical reasons) – a very significant achievement

– Business has stabilised, but one remaining poorly performing contract that we

need to resolve

– Remaining construction defects have been agreed with clients and provided for

16

Summary

– Business is “recovering” not “recovered”

– Success in the 6-4 competition – major achievement

– Termination of the loss making facilities management contracts – a major step forward

– Rail revenues look strong

– Plant revenues visibility and mix an issue

– Government/Network Rail forecasting substantial future enhancement programme

– Overhead reduction progressing well