FIRST SESSION FINAL

Slide1: 

Analyst and investor seminar 17 May 2007 Delivering performance and value

Slide2: 

Certain statements in this presentation are forward looking statements. By their nature, forward looking statements involve a number of risks, uncertainties or assumptions that could cause actual results or events to differ materially from those expressed or implied by the forward looking statements. These risks, uncertainties or assumptions could adversely affect the outcome and financial effects of the plans and events described herein. Forward looking statements contained in this presentation regarding past trends or activities should not be taken as representation that such trends or activities will continue in the future. You should not place undue reliance on forward looking statements, which apply only as of the date of this presentation. This presentation does not constitute or form part of any offer or invitation to sell, or any solicitation of any offer to purchase any shares in the Company, nor shall it or any part of it or the fact of its distribution form the basis of, or be relied on in connection with, any contract or commitment or investment decisions relating thereto, nor does it constitute a recommendation regarding the shares of the Company. Past performance cannot be relied upon as a guide to future performance. Important notice

Slide3: 

Samir Brikho Chief Executive Delivering performance and value

2007 trading update 16 May 2007: 

2007 trading update 16 May 2007 Core businesses End markets remain strong Good progress expected - tempered by strength of Sterling Step Change Programme ahead of schedule Savings at least to equal one-off costs Costs largely incurred in H1, with related benefits in H2 Built Environment – will be discontinued Programme of divestments progressing well Overall trading as expected, with return to profit in Construction No change in the board’s expectations for 2007

AMEC’s vision: 

AMEC’s vision Leading supplier of high value consultancy, engineering and project management services to defined market segments within the world’s energy and industrial process industries Services focused on designing, managing the delivery of, and maintaining strategic and complex assets Consult Engineer Procure Construct Operate Maintain project management capital expenditure operating expenditure Yellow shading denotes AMEC capability

Focussed AMEC – the investment proposition: 

Focussed AMEC – the investment proposition Design, manage and maintain complex assets in the oil and gas, power, mining and industrial process sectors Long-term client relationships and track record of delivery excellence - creates barriers to entry Good positions in chosen market segments Major opportunity to grow organically and by selective acquisitions * Adjusted profit before corporate costs, intangible amortisation and exceptional items and excluding Built Environment AMEC profit* 2006 £100.6 million

Power and Process - Industrial: 

Power and Process - Industrial UK leading positions in gas transmission and storage and electricity transmission Good positions in segments of the North American industrial process market Opportunity from increasing industrial capital expenditure Design, deliver, enhance and maintain electricity and gas infrastructure in the UK, and industrial plant in selected markets in the Americas

Power and Process - Nuclear: 

Power and Process - Nuclear Major alliance in the UK with UKAEA and CH2MHILL A leading position on reactor restarts in Canada Long-term client relationships Significant long-term opportunities in decommissioning, restarts and new build Consultancy, programme management and asset delivery services to clients on both sides of the Atlantic

Earth and Environmental: 

Earth and Environmental A leading position in Canada and major supplier to the US Air Force Commonality of clients with other AMEC businesses Cross-selling opportunities Long-term growth prospects in sizeable market Environmental legislation High level of development in environmentally sensitive areas Fragmented market provides consolidation opportunities Consultancy, engineering and project management services in environmental, geotechnical, materials and specialty water fields

Agenda: 

Agenda Earth and Environmental Roger Jinks, President Questions Refreshments Power and Process Tim Watson, President UK Industrial Steve Lee, Managing Director Americas Industrial Tim Gelbar, President AMEC Nuclear Mike Saunders, President Panel Q&A Drinks

Slide11: 

Roger Jinks President AMEC Earth and Environmental

Agenda: 

Agenda AMEC Earth and Environmental Overview Services and markets Customers and competition Nature of contracts Growth Questions and answers Across the world Responsibility for the long term

Overview: 

Overview Strong market growth Environmental legislation Corporate Social Responsibility Climate change Robust and sustainable multi-sector business with repeat customers Track record of growth Strong team Major opportunities for growth, e.g. in US

Earth and Environmental Principal activities: 

Earth and Environmental Principal activities AMEC Earth and Environmental provides specialist environmental, geotechnical, programme management and consultancy services to a broad range of clients in the public and private sectors The business operates from a regional office network, and is typically characterised by a large number of small value contracts with a few larger projects (e.g., resource sector, programme management) A “seller-doer” model employing many specialised consultants: engineers, scientists, biologists, toxicologists, planners, chemists, sociologists, etc Strongly entrepreneurial culture – best growth ideas from front-line people Highly talented people, adding value to clients’ operations

Earth and Environmental Locations: 

Earth and Environmental Locations Local service global reach 2800 employees Over 100 office locations: opportunity for consolidation Mainly across North America but including UK, Germany, Russia, Peru, Iraq, and Afghanistan

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Earth and Environmental Business profile Safety is paramount 13,000 contracts a year: typically short duration Average contract size £15k Peak number of invoices per month 6,000 Contracts are a mixture of cost plus and lump sum Local business management and control: management training programmes Acquisition experience: many bolt-on acquisitions; one or two larger acquisitions We design, deliver and support - from technical services to landmark projects

Examples of our services: 

Examples of our services Water management, development and protection Water and air quality Geotechnical design and analysis Tailings/waste dump design and construction monitoring Materials testing and construction monitoring Environmental site characterisation Environmental impact studies and permitting Clean-up planning and execution Ecological studies Oceanography and meteorology Waste management Engineering design Socio-economic studies Infrastructure design Programme management World skills on your doorstep

Business segmentation: 

Business segmentation

Earth and Environmental Results: 

Earth and Environmental Results 2005 2006 £ million Revenue 281.7 270.9 +4% Profit 15.2 14.1 +8% Margin 5.4% 5.2% +0.2pts Average employees 2,800 2,500 +12% Net assets 4.3 16.3 -74% Division margin of 6.6%, pre corporate allocation Since 2000, Compound Annual Growth Rate (CAGR) has been 25% (revenue and profit) Upper quartile margin performance for similar NA-based consultancies 6-8% Target margin 2008: 6-8%

STEP Change Actions: 

STEP Change Actions Enhanced IT systems: Dynamic invoicing / AP Imaging Accounting function consolidation Project support services (financial, commercial, procurement) Increase utilisation US by 5% Cost recoveries on equipment Rate schedule discipline A STRUCTURAL MEASURES US OPERATIONAL EFFICIENCY B OVERHEAD EFFICIENCY C Reduction of travel expenses Negotiation of company-wide contracts Office supply Centralise travel vendors Communications Real estate management vendor Consolidation of offices Earth and Environmental is committed to delivering on STEP Change

Long-term relationships Public and private sector clients: 

Long-term relationships Public and private sector clients · Imperial Oil · Tim Horton’s · GE · Ford · Exxon · BP · BASF · Suncor · · Potlatch Corp. · Magna · Barrick Gold Corporation · Syncrude · · Enbridge · DeBeers · Home Depot · Weyerhaeuser · · U.S. Air Force · U.S. Army · U.S. Army Corps of Engineers · · U.S. National Guard · Provincial and State DoTs · Municipalities · · Canadian DND · PWGSC · Provincial and State agencies ·

Examples of our work Energy sector: 

Examples of our work Energy sector MacKenzie Valley Pipeline Route EIA study for the proposed pipeline to carry gas from north of Inuvik to Alberta National Grid, UK Ecological studies, EIA reporting and geotechnical investigations for proposed gas pipelines Sakhalin 1, Exxon, Russia On site since 1993: planning, coordinating and conducting all project packages for submission to Russian regulatory agencies Atlantic Canada Offshore Meteorology Offshore services for platforms for clients including Husky, Chevron etc.

Examples of our work Mining sector: 

Examples of our work Mining sector Petaquilla, InMet/PTQ/Teck Cominco, Panama Scope includes tailings management, open pit geomechanics and hydrogeology, water management, and site geotechnics Rosia Montana Gold, Gabriel Resources, Romania Permitting assistance, public consultation, geotechnical design, EIA reporting Victor Mine, De Beers, Ontario Engineering and environmental services including: permitting, permafrost engineering, geotechnical design, and various technical studies Pogo Gold, Teck Cominco/Sumitomo, Alaska Permitting, hydraulics/hydrogeological design, road and foundation engineering, tailings and dam designs

Examples of our work Water management sector: 

Examples of our work Water management sector St Mary Spillway – Alberta Infrastructure Design and construction supervision of 300 m long new spillway structure Ontario Groundwater Study Project to map water resource data and identify vulnerable aquifers in several northern communities Federal Emergency Management Agency Multi-state and multi-year contracts for floodplain mapping services including data collection, hydrology, hydraulics, mapping and GIS National Pollutant Discharge Elimination System services Supporting U.S. municipalities achieve Best Management Practices dealing with stormwater management issues and NPDES regulations

Examples of our work Federal sector: 

Examples of our work Federal sector US Army Corps of Engineers Fort Dix, NJ A 14 year relationship, performing environmental investigation and remediation services McAlpine Lock Replacement, Louisville, KY Largest set of Locks in the world Contract for quality assurance testing Follow up archeology work and mitigation US Air Force Center for Environmental Excellence Multi-year, multi-billion dollar contract for architect-engineering environmental services AFCEE’s highest “blue” rating for excellence in Iraq work WERC/HERC/4P Contracts: access to in excess of £5b capacity spend over 5 years Active on 50 Air Force bases in the US and overseas

Earth and Environmental competition United States: 

Earth and Environmental competition United States Highly competitive market Fragmented market, several big players Typical 5-10% growth rates Relatively mature market Major headroom for AMEC in this very large market Revenue (£ million)

Earth and Environmental competition Canada: 

Earth and Environmental competition Canada

Earth and Environmental competition United Kingdom: 

Earth and Environmental competition United Kingdom

Slide29: 

Earth and Environmental Helps differentiate AMEC services Our environmental capability positions us at the start of the project cycle, and allows us to provide support and advice throughout the project lifecycle

Slide30: 

Key business drivers Evolving global environmental legislation and increased regulatory enforcement Increasing Corporate Social Responsibility (CSR) Exploration of increasingly environmentally sensitive regions by natural resources companies Increasing use of brownfield sites Climate change M&A activity Globalisation of multinational client base US base closures and re-alignment AMEC is not dependent on any one customer

Strategy for growth: 

Strategy for growth Grow services related to core activities and complementary offerings STEP Change Achieve higher margins: target margin 2008 6-8% Drive operational excellence Acquisitions Geographic and regional expansion through small bolt-on acquisitions More significant growth through larger acquisitions particularly in the US International growth mainly through existing multinational customer base Strong markets; robust multi-sector business; great growth opportunity A £500m business by 2010

AMEC Earth and Environmental: 

AMEC Earth and Environmental Questions