Laing O'Rourke Annual Review 2009Operating review - Middle East and South Asia The lower level of activity in the region has reduced the demand for rebar products and plant. Select is in the process of transferring equipment back out of Dubai to areas of higher demand in our other international hubs. This process is a reversal of the mobilisation strategy Select employed in the region when the rate of demand was at its peak, highlighting the competitive advantage of Select's international coverage strategy, coupled with its ability to export plant and equipment rapidly overseas as required. Select has a continual- replacement programme and new purchases reflect the changing sectoral focus we are pursuing in the Middle East, targeting social infrastructure, energy, utilities and transport infrastructure work. For example, the business recently purchased rail equipment required for the North- South rail line project, in the Kingdom of Saudi Arabia. India The economic slowdown has not passed India by. There has been a significant reduction in real estate prices over the past year, which has impacted demand for construction services. Nevertheless, we continue to work on 15 schemes with our joint venture partner, but remain cautious over the medium term outlook. Outlook We remain committed to the region and view the strategic development of our presence across prioritised sectors in Abu Dhabi as a key goal. We will continue to tender for contracts with well- funded clients that offer appropriate growth opportunities, meet our earnings quality targets and are cash- positive in terms of their contracting arrangements. Additionally, we will continue to evaluate opportunities elsewhere in the UAE, particularly in programme management, leveraging our credentials from Al Raha Beach. Many of our Middle Eastern clients operate in multiple jurisdictions and we have established very strong contacts in the region over the last 30 years, which we continue to nurture and develop. Overall, despite the current challenges, we are confident the region offers good long- term prospects. We have the people, the client base, the delivery capabilities and the expertise to maximise opportunities as they present themselves. 01 Atlantis Hotel, The Palm, Dubai, UAE The prestigious Atlantis Hotel and Water Park was completed ahead of schedule in 2008. 01 46- 47

Australasia Our success this year is matched by a growing reputation and brand presence. We continue to build a strong portfolio of forward work. Overview The Australian economy was one of the last to be impacted by the change in global economic conditions, partly due to its mineral wealth and highly regulated banking system. Consequently, our business enjoyed a good year. Indeed, since 2006 the business has trebled managed revenues to over £ 850 million and profits exceeded budget. Our Australasian hub is diversified in both the range of sectors and client types it serves. Our continuing strategic focus on rail, mine infrastructure and energy projects has positioned the business well to benefit from the planned public and private sector investment programmes. Our growing reputation and brand presence in the region is serving us well in the work-winning stages as we continue to build a strong portfolio of forward work such as the Newcastle Port upgrade. During the year under review, we expanded further our operational reach from the hub, exporting our expertise in rail infrastructure into Saudi Arabia, working in joint venture with others delivering the North- South Railway. We will continue enhancing the level and quality of our earnings profile by targeting and broadening our client coverage in this way. Capabilities - Investment and development - Programme and project delivery management - Design - Enabling works - Core construction - Mechanical and electrical engineering - Operational maintenance - Support services Companies - Explore Investments - Laing O'Rourke Construction - Expanded - Austrak - Redispan - Select Highlights for 2009 - Substantial project wins in key strategic sectors - Exporting rail capability into new markets in Saudi Arabia - Strong revenue performance - Completion and handover of major projects on time, on budget, and to the highest quality Priorities for 2010 - Training and development of our people - Further establish leadership position in the rail, mine infrastructure and energy sectors - Invest in operation platform improvements to support the business for further growth - Expansion into further Australian regions and Indonesia Financial summary £ m 2009 2008 Change Managed revenue 851.8 574.4 + 48.3% EBIT 21.0 16.8 + 25.0%