Investor Pack - Interim Results for the 6 Months ending 30th June 2015

Building innovation Building relationships Building services

6 Months to 30th June 2015 Revenue £112.0m Forward order book £320m Underlying operating profit £1.4m Profit before tax £0.9m Earnings per share 1.74p Interim dividend per share 0.5p Net Debt £8.7m

August 2015

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Mark Lawrence Chief Executive

Martin Walton Finance Director

Presentation by

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Presentation for Interim Results for the 6 Months ending 30th June 2015

Main Contents

Page 2 Introducing TClarke

Page 3 Presentation Contents

Page 4 Group Highlights

Page 5 Financial Highlights

Page 6 Income Statement

Page 7 Cash Flow

Page 8 Balance Sheet

Page 9 Operational Review

Page 10 Nationwide Coverage

Page 11 Forward Order Book

Page 12 Key London Projects

Page 13 TClarke - London & South East

Page 14 TClarke - Central & West

Page 15 TClarke - North

Page 16 TClarke - Scotland

Page 17 Summary

Page 18 Appendices

Page 19 PLC Board

Page 20 Innovation - TClarke Safety App

Page 21 TClarke Founded 1889

Page 22 Vision and Strategy

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Group Highlights

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• Leading UK provider of complete range of building services

• Strong reputation for quality with long standing client relationships

• Highly experienced team with nationwide strength

• Revenues of £112m

• Maintained Interim dividend 0.5p

• Underlying operating profit £1.4m

• Profit before tax £0.9m

• Net Debt of £8.7m but improving position

• Onsite works to commence on the large London schemes at Rathbone Square, Principal Place and London Wall Place

• £320m forward order book up 16% on the same time last year

• 75 New apprentices begin training across the UK from September

• TClarke North West moves to larger premises at Ackhurst Business Park

• Excellent opportunities for forward growth and future profitability

Newcastle Central Station, Metro Station Refurbishment

Financial Highlights

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30/06/2015 £m

Margin %

30/06/2014 £m

Margin %

Revenue 112.0 109.8

Underlying operating profit¹ 1.4 1.3% 1.2 1.1%

Profit before tax 0.9 0.9% 0.2 0.2%

Earnings per share – basic 1.74p 0.32p

Earnings per share – underlying² 1.96p 1.58p

Interim dividend Net debt3

0.5p

(8.7)

0.5p

(4.3)

Order book 320 275

1 Before £0.1m (2014: £0.1m) amortisation and non-recurring costs (2015: £nil; 2014: £0.6m exceptional claim settlement costs) 2 Before amortisation and non-recurring costs, and tax on these items 3 Facilities comprise £5m RCF and £11m overdraft facility renewed July 2015

Income Statement

• London and South benefiting from large London schemes • Central and West affected by main contractor issues in Cardiff office • Net interest includes £0.3 m non-cash items (2014: £0.2m) • Non-recurring items in 2014 relate to settlement of historic claims

Segmental Analysis 30/06/15 £m

30/06/14 £m

Revenue Underlying Profit Margin Revenue Underlying Profit Margin

London & South 57.8 1.2 2.3% 42.9 (0.4) (0.8)%

Central & West 30.7 (0.6) (2.0)% 37.8 0.5 1.2%

North 17.4 0.7 4.1% 20.5 0.9 4.3%

Scotland 6.9 0.1 0.7% 9.8 0.2 2.4%

Other (0.8) - (1.2) -

Total revenue 112.0 109.8

Underlying operating profit 1.4 1.3% 1.2 1.1%

Net interest (0.4) (0.3)

Underlying PBT 1.0 0.9

Non-recurring items - (0.6)

Amortisation (0.1) (0.1)

Profit before tax 0.9 0.2

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Cash Flow

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30/06/15 £m

30/06/14 £m

Operating cash flow before working capital movements 1.7 0.6

Working capital movement (14.2) (5.4)

Operating cash flow (12.5) (4.8)

Net interest (0.1) (0.1)

Corporation tax (0.2) 0.3

Fixed asset disposals net of additions (0.1) 0.2

Cash outflow before financing 5.5 (3.3)

Bank loans 5.0

Dividends paid (1.1) (0.9)

Net cash inflow / (outflow) (14.0) (4.6)

Opening cash 10.3 5.6

Closing cash (3.7) 1.0

• Working capital outflow due to investment in engineering resources and start up costs on large London schemes • £11m overdraft facility renewed July 2015

• £5m 3 year committed facility to March 2017, fully drawn • £17.5m bonding facilities, c£7.4m utilised

Balance Sheet

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Balance Sheet 30/06/15

£m 30/06/14

£m

Intangible assets 23.1 23.3

Property plant and equipment 4.8 5.3

27.9 28.6

Inventories and construction contracts 33.1 25.0

Debtors 32.5 37.5

Creditors (52.2) (53.2)

Working capital excluding cash 13.4 9.3

Net debt (8.7) (4.3)

4.7 5.0

Pension scheme (15.7) (11.7)

Tax - current and deferred 2.6 1.4

Other payables (0.3) -

Net assets 19.2 23.3

Net current assets 9.5 4.5

• Pension scheme impacted by macroeconomic factors • Cash contributions to pension scheme c£1.3m pa • Net current assets increased • Net debt includes £5m RCF repayable 31/03/2017

Operational Review

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First Bus, Three New Bus Depots and Regional Headquarters, Glasgow

John Lewis at Home and Waitrose, Basingstoke

New contracts secured since our previous announcement include:

Beaufort Park, for St George part of Berkeley Group

Bird and Bird fit out, London

Cambourne Primary School

Chiswick Park Building 7, London

Irvine Leisure Centre. Ayrshire

John Bull Building, New Research Facility, Derriford, Plymouth

Lymm, New Fire Station and Safety Centre for Cheshire Fire and Rescue Service

Minerva Student accommodation, Cardiff

Newcastle Central Station, Metro Station Refurbishment

Scarborough Leisure Village

Stevenage Accelerator Building

Summit House, London

Sunderland University, Science Block

Temple Learning Academy, Leeds

TWI Training and Examination Services, Middleborough

Waitrose & John Lewis at Home, Basingstoke

Waitrose, Guildford

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London

Accrington

Derby

Bristol

Cardiff

Falkirk

Harlow

Peterborough

St Austell

Leeds

Plymouth

Sittingbourne

Huntingdon

Aberdeen

Newcastle

Colchester

TClarke – Scotland

TClarke – North

TClarke - Central & West

TClarke - London & South East

51%

27%

16%

6%

Revenue by Regions For the 6 Months ending 30th June 2015

Nationwide Coverage

Forward Order Book

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First Bus, Three New Bus Depots and Regional Headquarters, Glasgow

Image credit: Hayes Davidson / Jason Hawkes

320

57

155

108

0 50 100 150 200 250 300 350

Total forward order book

Order Book 2017 – 2021

Order Book 2016

Order Book July – Dec 2015

The Groups forward order book from July 2015 breaks down as follows: All figures in £ Millions

Bird and Bird, London Chiswick Park, Building 7

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Key London Projects

2015 2016 2017 2018 Secured Projects 2015 2016 2017 2018

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Secured Projects Total Contract

Value

BBC Studios £6 m

Selfridges £10 m

Tate Modern £8 m

Ruskin Square £4 m

Project Nova £12 m

Mizuho Bank £10 m

1 Angel Court £7 m

Rathbone Square £19 m

Principal Place £12 m

London Wall Place £21 m

Bloomberg London £34 m

10 Fenchurch Avenue £12 m

Victoria Station £19 m

100 Bishopsgate £28 m

Bank Station £11 m

Total £213 m

Note Certain contracts commenced prior to July 2015

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TClarke - London & South East

TClarke – London & The South East, the offices in this division are London Head Office, Harlow Manufacturing Facility, Colchester (Design and Build division) and Sittingbourne.

96% 2015 Secured Revenue

0% 20% 40% 60% 80% 100% 120%

2015 Secured Revenue

Key Facts: London market remains central to the Group, M&E Contracting supports our other business sectors. Excellent client and contractor relationships. Reputation for delivery demonstrated by significant contract wins. Highly skilled workforce and technically experienced engineers who set high standards and continually innovate, with clients wanting to lock in our skills.

Future Opportunities Include • 22 Bishopsgate

• Westfield London Extension

• Gotham City

• White City Redevelopment

• Goldman Sachs

• Wimbledon - No1 Court

• The International Quarter

• London Underground ‘Future Stations’ Projects

• Gatwick Airport Railway Station Redevelopment

• Heathrow Airport, various packages White City Extension

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TClarke - Central & West

TClarke – Central & West - The offices in this division used to operate as part of TClarke South but have been split from January 2015 In the Central and West we operate from Bristol, Cardiff, Derby, Huntingdon, Peterborough, Plymouth and St Austell.

84% 2015 Secured Revenue

0% 20% 40% 60% 80% 100%

2015 Secured Revenue

Key Developments

• Business in St Austell relocated to new offices at St Austell Business Park

• Strategy to target larger contracts in the South West - successful

• Cardiff office experiences problem contract

• Opportunity with Philips Healthcare progressing

• Significant number of residential schemes continue to come to market

• Continue to see spend with longstanding clients e.g. Waitrose

• Plans for TClarke East and Midlands to work closer together

• Growth opportunities in Birmingham and Cambridge to be targeted

Stevenage Accelerator Building

Waitrose, Guildford

TClarke - North

TClarke – North - We operate from our offices in Accrington, Leeds and Newcastle.

New Home for TClarke North West

Our team at TClarke North West are based at Accrington and will shortly relocate to larger offices at Ackhurst Business Park in Chorley. This new office is ideally located to service our current client base and will also assist with our growth aspirations for the wider North West.

95% 2015 Secured Revenue

0% 20% 40% 60% 80% 100%

2015 Secured Revenue

Two significant FM contract wins for this Division demonstrate that our nationwide FM coverage and capabilities are being recognised. The two contracts mean that we now provide FM services for 500 care homes and 60 office buildings nationwide, operated from a single hotline service in Leeds. We continue to work extensively for BAE at Warton and Samlesbury and continue to pursue additional opportunities at Barrow-in-Furness

New Project Sunderland University Science Block

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Taylor Wimpey, Torrance Park, Holytown

TClarke - Scotland

TClarke Scotland, we operate from our main office in Falkirk and a regional office in Aberdeen.

TClarke Scotland continues to seek opportunities in the wider M&E sector by recently securing a project at Hunterston Power station on the west coast of Scotland.

Contractor of choice to the leading house builders in the Scottish market, current example projects: • Barratt East, Agilent Affordables, South Queensferry, Residential, villas, full Electrical & AV • Barratt East, Duddingston, Edinburgh, Residential, villas, full Electrical & AV • Barratt East, South Gyle Edinburgh, Residential, villas, full Electrical & AV • Barratt East, Jewel & Esk, Dalkeith - (Barratt East), Residential, villas, full Electrical & AV • Barratt West, Inchross Grange Phase 2, Bathgate, Residential, villas, full Electrical & AV • Cala East, Alnwickhill, Edinburgh, Residential, villas, full M&E • Cala West, Campsie Road, Strathblane, Residential, villas, full M&E • Cala West, Cala Homes West, Lenzie Phase 2 Extension, Residential, villas, full Mechanical • Miller Homes, Lindsayfield H33, East Kilbride, Residential, villas, full Electrical & AV • Robertson Homes, Block C3 (Fife Council), Abbey Walk, St Andrews, Residential, villas, full

Electrical & AV • Robertson Homes, Block C2 , Abbey Walk, St Andrews, Residential, villas, full Electrical & AV • Taylor Wimpey East Scotland, Bilson Phase 2, Edinburgh - Section 3, Residential, villas, full

Mechanical • Taylor Wimpey East Scotland, Armadale North Phase 2, Residential, villas, full Mechanical • Taylor Wimpey East Scotland, Bilston - Melville Housing Association (Cottage Flats), Residential,

villas, full Mechanical

86% 2015 Secured Revenue

0% 20% 40% 60% 80% 100%

2015 Secured Revenue

Irvine Leisure Centre. Ayrshire

Intelligent Buildings is gathering significant momentum with a number of key projects secured on group projects.

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Summary

Looking Forward with Increasing Confidence

• Solid Revenues of £112m

• Interim dividend maintained

• Record forward order book £320m

• The recovery in our markets is clearly being driven from London

• Strong order book provides a platform to grow the business and improve the profitability of the Group

• The Board looks forward to 2016 and beyond with increasing confidence

Presentation Cover Picture Projects

1 London Wall Place

2 100 Bishopsgate

3 South Bank Tower

4 Rathbone Square

5 Bloomberg London

6 Project Nova, Victoria

7 Riverwalk House

8 Principal Place

5 6

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3 2 1

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Appendices

Appendices

Page 19 PLC Board

Page 20 Innovation - TClarke Safety App

Page 21 TClarke Founded 1889

Page 22 Vision and Strategy

www. .co.uk 18

PLC Board

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5 6 7

5 Danny Robson, Executive Director

6 Mike Crowder, Managing Director

7 Martin Walton, Finance Director

8 Mark Lawrence, Chief Executive

1 2 3 4

1 David Henderson, Chairman

2 Iain McCusker, Senior Independent Director

3 Beverley Stewart, Independent Director

4 Tony Giddings, Independent Director

5 6 7 8

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Safety Everything starts with safety Safety is priority number one with TClarke. Our new ‘You See, You Say’ App offers an industry leading advance in proactive safety hazard reporting.

Innovation - New Safety App

TClarke Founded 1889

• TClarke and Co. Founded 1889

• Became a Limited Company 1911

• Listed on London Stock Exchange 1948

• 53% of shares acquired by Electrowatt Engineering Services, Zürich

• Electrowatt acquired by Siemens in 1998 and 53% holding placed with institutions

• UK presence expanded by acquisition and organically

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Our Vision TClarke aims to be a strong, successful and highly capable building services contractor, organised to create and take advantage of market

opportunities for profitable growth across the construction industry; retaining TClarke’s traditional focus on delivery of high quality work, by highly-motivated and expert teams, sustaining long-term relationships and unlocking new streams of innovation to create value for all our

shareholders.

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Vision and Strategy

What we do TClarke is a nationwide building services contractor. We provide high quality work, innovation and project delivery, with the reassurance of our

trusted brand. We create high quality engineering jobs and opportunities for our people.

Our Strategy Our strategy is to sustain world class building services capability and build a ‘growth-ready’ platform capable of exploiting existing and fast-

changing opportunities for value creation.

Deliver complete, high quality, nationwide building services

capability

Build a ‘growth-ready’ unified business platform retain and

enhance our established

brand advantages focus on innovation and relationships

Drive opportunities for sustainable growth