Purpose, Vision, Values and Business Model “ Only a commitment by all the team will bring SAI Global’s vision alive” Ross Wraight CEO February 2007 APPLIED

Purpose, Vision, Values and Business Model “Only a commitment by all the team will bring SAI Global’s vision alive”

Ross Wraight CEO February 2007

APPLIED INFORMATION SERVICES

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Facilitators:

Ross Wraight, Chief Executive Officer

Andrew Jones, Group Director Human Resources

Welcome

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Roll out SAI Global’s Purpose, Vision, Values and Business Model to all employees

Gain an understanding of their impacts on our stakeholders

To gain your commitment to the Purpose, Vision & Values

To agree behaviours that align with our Purpose, Vision & Values and to identify behaviours that do not

What are we to achieve today?

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1. Business Model and Strategy

2. Purpose, Vision and Values

3. Next Steps

Agenda

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Why have a Business Model?

Our Business Model is the embodiment of our Purpose & Vision

It shows how the parts of the business fit together

The Business Model shows how through working together the value of SAI Global is more than the sum of its parts

It differentiates us from our competitors

1.1 SAI Global Business Model

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SAI Global is an applied information services company. It:

Is your source for global technical and business information

Provides end-to-end training solutions around critical business information

Helps you understand, implement and manage the information associated with business systems and processes

Enables you to verify your understanding of information by providing independent assessment, certification and registration.

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Distribution DatabasesSearch

Apply Business SolutionsProvide Information

ConformityAssessment

- Product - Food - Systems

Audit Effectiveness

PUBLISHING

Supported by TRAINING and BUSINESS IMPROVEMENT SOLUTIONS (Professional Services)

Standards

Legislation

Databases

Property

Other Technical

Alerts

News feeds

Monitoring

Awareness and understanding

COMPLIANCE ASSURANCE

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Summary:

SAI is a top 300 company listed on the ASX with a market capitalization $574M, January 30, 2007

2006/7 Est. revenues >A$210 million

2006/7 Est. EBITDA of >A$42 million

More than 800 professionals with 353 offshore

Physical operations in Asia-Pacific, Europe and North America

Customers across the world

70% of revenue is annuity type

Capex is small

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Industry demand drivers:

Globalization

Corporate compliance

Risk management

Brand reputation protection

Fraud and corruption control

Regulation and Industry standards

Improved productivity

Long supply chains

Customer and consumer confidence

Greater demand for SAI Globalservices

High growth rates

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Value proposition for our services:

In essence, SAI Global helps organizations comply with therequirements that shape the business world, it:

Provides easy on-line access to millions of items of Standards, regulatory and technical information

Takes the burden out of regulatory and internal compliance Protects brands and reputations Pushes information and training where and when its needed Simplifies cross-border and language exchange Provides supply chain confidence Improves and sustains business

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Business Competitors:

SAI is the first organization of its type to list on a stock exchange and has no direct equivalent

In the international technical publishing space SAI competes with IHS, Reed Elsevier and Thomson

There are numerous competitors in regulatory compliance space but few offer SAI’s end-to-end solutions. Competitors include:

Complinet and Lexis Nexis for alerts and news feeds

Paisley and Methodware for monitoring systems

LRN and Integrity interactive for communication and awareness

In the certification space SAI competes with organizations such as SGS, Lloyds Register, BSI & Bureau Veritas

The training and consulting market is highly fragmented and SAI has numerous competitors

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1.1 SAI Global Business ModelRevenue by business Revenue by region

AS

BP

PSCS

Australia

Europe

Asia

Nth America

BP=Publishing, CS=Compliance, PS=Professional Services, AS=Assurance

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Financial Performance - Group

Revenue

0

50

100

150

200

250

00/01 01/02 02/03 03/04 04/05 05/06 06/07

A$M

EBITDA

0

10

20

30

40

50

00/01 01/02 02/03 03/04 04/05 05/06 06/07

A$M

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Financial Outcomes – Half Year 2006/07

– Underlying Business Performance–Revenue1 up 46.7% to $100.8 million, –EBITDA up 50.6% to $19.3 million

– AIFRS Reported Results–NPAT up 38.1% to $8.1 million, –EPS up 3.6% to 5.7 cents

– Underlying Cash Earnings–Cash earnings up 35.5% to $12.3 million, –Cash earnings per share up 1.2% to 8.6 cents

1. Excludes interest income

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1.2 Publishing

Build a world leading international, technical publishing, distribution and information business

Approximately A$70M revenue, mainly recurrent revenue

Delivers a major and stable annuity earnings engine

Operations in Australia, Europe and North America

Non-exclusive licenses with more than 250 international standards bodies including BSI (UK), ASTM (USA) and NFPA

Exclusive distributor of Irish Standards and Australian Standards

Distributor of USA Military Specifications

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Business Publishing – Half Year 2006/07

6 Months 1H07 1H06 Change$M $M %

Revenue 36.7 22.3 64.2

EBITDA 11.7 6.7 75.3

EBITDA margin (%) 31.9% 29.9% 6.7

2005 1st half

2005 1st half

Revenue

0

20

40

60

FY01 FY02 FY03 FY04 FY05 FY06 1H07

A$M

EBITDA

0

5

10

15

20

FY01 FY02 FY03 FY04 FY05 FY06 1H07

A$M

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1.2 Publishing – IP Providers

USA Military Specifications

and many others

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1.2 Publishing

Key Services:

Watching Services Standards Watch – More than 140,000 subscribers Regulatory News Feeds – Track & monitor Australian law

Search & Database Services Standards Online Select – More than 1,000 customers Standards Premium Select – More than 300 customers Standards Infobase – More than 700,000 Standards Metals Infobase – Search 14,000 related Standards & materials &

70,000 grades Eurolaw Database – search industry treaties, directives, regulation and

case law Logicom – 150 million items covering military parts & logistics Webshop – Download a PDF or print-on-demand

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1.2 Publishing

Outlook:

Business model produces excellent financial outcomes and is efficient, transportable and scalable

Increasing use of electronic delivery services Penetration of non-traditional markets through Anstat and ILI

acquisitions Growth opportunity in global Standards and database markets Aggressive targeting of new business opportunities Continued revenue and EBITDA growth

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1.3 Compliance

Our strategy in this business is to establish a leading global scale business in the international compliance management, training, awareness and solutions market

Cost effective electronic solutions in multiple languages and countries

Presence in key geographic markets with content capability and range

Effective pricing and marketing models for solutions, retail and tools markets

Solutions underpinned by proprietary technology

Fragmented market Blue chip client base

Revenue

0

5

10

15

20

25

30

00/01 01/02 02/03 03/04 04/05 05/06 06/07

A$M

EBITDA

0

1

2

3

4

5

6

7

00/01 01/02 02/03 03/04 04/05 05/06 06/07

A$M

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Compliance Services – Half Year 2006/07


Revenue 10.1 7.3 38.6

EBITDA 1.6 1.5 10.6

EBITDA margin (%) 16.3% 20.4% (20.0)

2005 1st half

2005 1st half

Revenue

0

5

10

15

20

FY01 FY02 FY03 FY04 FY05 FY06 1H07

A$M

EBITDA

0

1

2

3

4

FY01 FY02 FY03 FY04 FY05 FY06 1H07

A$M

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1.3 Compliance

Key subject areas:

Financial compliance Anti Money Laundering, Operational Risk, Fraud, Consumer Protection

Asset protection Information Security, Employees, EHS, Privacy & Data Protection

Business ethics Governance, bribery, fraud, conflicts of interest, antitrust, diversity

Managing Risk Process & system management, OHS, IPR, procurement

SAI provides business solutions underpinned by proprietary technologies

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1.3 Compliance – Business Model

Risk & Compliance Framework(common to all programs)

Know what

affects you

Create Policy

Communicate & Train

Monitor Activity

Report on Activity

Audit Results

Compliance Guidelines & Update Services

Learning Content & Services

Risk & Compliance Monitoring Toolkit &

Implementation Services

Audit Services

SAI Change Management & Project Management Services(recommended through all stages of the process)

Apply Business Solutions

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1.3 Compliance

Why are compliance services important for SAI?

They are an integral part of the SAI business model

There is a growing need for cost effective solutions to the compliance issues that organizations need to deal with - increasingly on a global scale

There are strong demand drivers for services, resulting in high organic industry growth rates. USA led the way, Europe and other markets “catching up”

There is currently a fragmented supply of services which provides the opportunity for SAI to establish a leading position in the market

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1.3 Compliance

Why are compliance services important for SAI? (cont.)

Strong profit outcomes are expected and consequently compliance assets are increasing in value

SAI is experiencing strong growth in both headline sales and recognized revenue for all major compliance product streams

SAI’s compliance division’s organic growth for the first half ended 31 Dec 06 exceeded 20%

The flow through to the profit contribution from the compliance division has been impacted by investment in sales infrastructure and product development

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1.3 Compliance

Outlook:

Growing recurring revenue base Growing regulatory demand for compliance Consolidation occurring at the technology end Developing opportunities through SAI Global relationships Continued revenue and EBITDA growth

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1.4 Training and Business Improvement Solutions

Our strategy in this business is to diversify product range and develop sources of recurring revenue that drive growth and profitability improvement

Continue to develop non-standards based products

Development of information based products

Business development component of our value chain

Few recurring revenue streams Standards based product sales

depend on new product releases

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Professional Services – Half Year 2006/07


Revenue 10.8 10.4 3.1

EBITDA 0.8 0.7 21.0

EBITDA margin (%) 7.9% 6.7% 17.9

2005 1st half

2005 1st half

Revenue

0

5

10

15

20

25

30

FY01 FY02 FY03 FY04 FY05 FY06 1H07

A$M

EBITDA

(1)

0

1

2

3

FY01 FY02 FY03 FY04 FY05 FY06 1H07

A$M

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Key Services:

Solutions- Public courses- Seminars- Workshops- Instructor-led & in-house training- e-learning Subject Areas- Six Sigma - Quality- Environment- Workplace safety- Food safety- Information security- Lead auditing

1.4 Training and Business Improvement Solutions

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1.4 Training and Business Improvement

Outlook:

Significant growth in business improvement products

Electronic training model starting to grow strongly (technology now available through compliance services)

Continued revenue and EBITDA growth

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1.5 Assurance Services

Our strategy in this business is to establish SAI Global as a leading international assurance business

Recurrent revenue streams, solid growth and profit model

Physical presence in key geographic markets Products deliver brand protection, consumer

and customer confidence Integrated offering i.e. QMS, EMS, workplace

safety, ISMS Consistent international delivery platform with

people capable of delivering Competitive advantage from “Five Ticks”

StandardsMark Supplier and customer driven industry

consolidation Growth in new products such as food safety,

corporate governance and social responsibility

Revenue

0

20

40

60

80

100

00/01 01/02 02/03 03/04 04/05 05/06 06/07

A$M

EBITDA

0

5

10

15

00/01 01/02 02/03 03/04 04/05 05/06 06/07

A$M

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Assurance Services – Half Year 2006/07


Revenue 43.2 28.4 52.0

EBITDA 6.1 4.6 30.3

EBITDA margin (%) 14.0% 16.4% (14.6)

2005 1st half

2005 1st half

Revenue

0

20

40

60

80

FY01 FY02 FY03 FY04 FY05 FY06 1H07

A$M

EBITDA

0

4

8

12

FY01 FY02 FY03 FY04 FY05 FY06 1H07

A$M

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1.5 Assurance ServicesProprietary Technologies & Trademarks Auditor Management System “Five Ticks” StandardsMarkServices Management systems registration Product certification Gap analysis Second party audit Supply chain complianceSubject Areas Quality Environment Workplace safety Food safety Information security Product safety

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1.5 Assurance Services

Outlook:

Continued development of global audit network

Supplier and customer driven industry consolidation

Growth in new products such as food safety, corporate governance and social responsibility

Continued revenue and EBITDA growth

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1.6 Financial Imperatives

Improve operational efficiency- Identify and eliminate duplication and wasted time- Improve processes, become more efficient- Cost to income ratio must continually decline

Integrate acquisitions- Realize cost and revenue synergies quickly

Establish regional shared service functions- Europe - advanced - Nth America - commencing, Midi acquisition being the catalyst

Improve reporting timetables- Systematic migration to common accounting platforms

Global approach to tax, cash, and franking credit management

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1.7 Financial and Strategic Outlook

First half financial performance in-line with expectations

Other than the impact of the acquisitions, full year in line with plan

Organic growth of 6-8%

Strong earnings per share growth expected in FY08 and FY09

Two to three acquisitions in the next twelve months likely

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How were our Purpose, Vision and Values derived?

Developed by EXCO at September 2006 meeting

Presentation to all SAI Global staff during Q1 2007


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Who are SAI Global’s Stakeholders?

Our customers

Our shareholders

Our employees; and

The community


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Why have a Purpose?

An organizational purpose communicates to all our stakeholders what SAI Global is in business to achieve

It assists us to remain focused on our core business activities

To be effective our Vision, Values and Business Model must support and be aligned with our Purpose

For an organization’s Purpose to appeal to all Stakeholders, it must meet the highest moral and ethical standards

2.1 Purpose

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Our purpose:

SAI Global, an applied information services company, helps organizations manage risk, achieve compliance and drive business improvement.

It enables organizations to improve, and enhances the confidence of their stakeholders, by:

- delivering standards, regulatory and technical information;

- adding value to this information through aggregation and interpretation;

- creating training, communication and monitoring solutions; and

- providing assurance through independent assessment.

2.1 Purpose

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What are our objectives? SAI Global can build stronger and longer lasting relationships with its customers by communicating explicitly how it improves business through its applied information services.

When communicating, these are the messages we want our customers to hear:

– we help improve business– we offer a range of services– we provide direction and tools for businesses to help themselves– we simplify confusion– we help businesses overcome obstacles

2.1 Purpose

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Why have a Vision?

A Vision communicates to all our stakeholders SAI Global’s strategic intent and how we propose to achieve it

It creates an easily understood goal that everybody associated with SAI Global can strive to achieve

A vision is a picture of what the future could be like. As such it should be inspirational and stretching

The Vision supports the Purpose and how we plan to build on it

To achieve our Vision our Values and Business Model must also support and align with the Vision

2.2 Vision

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Our Vision:

To be the world’s leading applied information services company we need to:

- achieve international scale;- deliver our customers outstanding products, processes and services.

We will do this through:

- the dedication of our people;- our commitment to excellence in governance;- driving superior shareholder returns.

2.2 Vision

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Why have Values?

Organizational Values help define the culture of an organization. They paint a vivid picture of “How we do things around here”

They succinctly articulate how SAI Global will treat its people and the behaviours it expects in return

They add an extra dimension to decision making by constantly reminding us “How” things should be achieved in SAI Global

An organization's values must be in line with its purpose and the vision that it is trying to achieve

They are of no value if they are not put into practice across SAI Global

2.3 Values

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Our Values:

SAI Global employees are at the core of its business and it is committed to:

- Showing respect- Developing careers- Offering challenging opportunities- Building great teams- Making work fulfilling

At SAI Global we pride ourselves on the fact that our employees are:

- Customer focussed- People of integrity- Responsible - Forward thinking and innovative- Focussed on performance

2.3 Values

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SAI Global’s commitment to showing respect…

2.3 Values – what do and don’t they mean?

Does Mean Does Not Mean

- People are valued for the contribution they make- Diversity is encouraged and respected- Opinions or suggestions are welcomed, listened and responded to- There is no monopoly on wisdom- Harassment, discrimination or vilification in any format is unacceptable

- All ideas are implemented- All requests can be actioned- Under-performance is acceptable

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SAI Global’s commitment to developing careers…



- Professional development and learning will be encouraged- High levels of Competence/Skill will be expected- Career ambitions can be fulfilled- For some a career will be a lifetime of doing the same job well – this is OK too

- SAI Global will organise all learning activities- Development outside the needs of SAI Global is a priority- Career progression comes easily

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SAI Global’s commitment to offering challenging opportunities…



- Offering opportunities that have meaning and align with professional development needs- Employees will be “stretched” to fulfil their potential- Where ever possible we will offer variety and broaden our people’s experience

- Employees will be “dropped in the deep end”- Everyone can pick and choose the opportunities they want all the time- Less attractive work will be always be for somebody else

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SAI Global’s commitment to building great teams…



- We welcome different points of view within our teams. Focussing on an issue from all perspectives leads to the best result - We appreciate that the essence of good teamwork is bringing together diverse skills and capabilities- Teams that are cross functional and cross divisional spread best practice- We believe that the value of a team is greater than the sum of its parts. Team players are valued at SAI Global

- Everyone is going to like everyone in their team- You are only in one team. You may, from time to time, be in varying teams- The value of individuals is not recognised

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SAI Global’s commitment to making work fulfilling…



- You will be doing work that directly aligns with SAI Global’s Strategy, Purpose, Vision & Values- We will all have targets and Key Performance Indicators (KPI)- You will have a say in your career at SAI Global- Your performance will be recognised

- We can satisfy everyone’s needs all the time- That less stimulating work is always for somebody else- That work will never be frustrating- That fulfilment is achieved without effort

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SAI Global’s employees are customer focussed…



- We recognise that customers are our life blood- We are passionate about exceeding their expectations- We approach every day knowing that customers have the choice to buy elsewhere- We seek and act on feedback from our customers- We are aware that our future depends on how we serve our customers

- We should put service before profit- That other stakeholders aren’t important- We should offer services we are ill-equipped to deliver, just because a customer requests it- We should not be commercially focussed- We should trade our integrity to win a customer

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SAI Global’s employees are people of integrity…



- We demand honesty, integrity and an ethical approach to everything we do- We are not frightened to say “I don’t know”- We are not frightened to own up to a mistake- We value people who follow the “right” course of action as opposed to the “easy” course of action

- That commercially focussed decision making is discouraged- That we are not profit focussed- That we do not compete robustly- That results are unimportant

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SAI Global’s employees are responsible...



- We deliver what we promise- We own up to and learn from our mistakes- We make decisions that are in the long term interests of SAI Global- We don’t “pass the buck”

- We make commitments we cannot meet- We blame others- We look for excuses

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SAI Global’s employees are forward thinking and innovative…



- We anticipate our customers future needs- We know what our competitors are doing and respond positively- We question the status-quo- We constantly seek out new ideas- We value people who take on new challenges and offer new ideas

- We should ignore the lessons of the past- That we haven’t got it right- When things go wrong, somebody is always to blame- That we can concentrate on the future and ignore what needs to be done today

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SAI Global’s employees are focussed on performance…


- We value individual and team performance- We strive to work smarter- We maintain work/life balance- We are committed to achieving or exceeding our objectives- We don’t accept failure easily- We recognise those who go that extra mile- We do not tolerate mediocrity

- We are not compassionate- We encourage short term gain for long term pain- We are not quality focussed- We achieve at the expense of our colleagues


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Organisational Behaviours Activity:

1. Break into teams and for 30 minutes brainstorm

- “What we currently do that aligns to the Purpose, Vision & Values and what doesn’t align?”- Suggest additions or deletions that we should make to what each element of the values “Does mean” and “Does not

mean”

2. Present your findings to the group

3. As a group discuss how we can change what needs to change

3. Next Steps

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So what happens now?

Systems and processes to be reviewed and where required alignment made (e.g. Performance Appraisals, Sales strategies, Acquisition pipeline, Organizational policies)

Start living the values – be comfortable to raise concerns with someone if their behaviours do not align to the values

Support the Purpose & Vision – look for opportunities that will help SAI Global & in turn our stakeholders achieve our Purpose & Vision

3. Next Steps

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Questions?

Thank you for your efforts to date and for those in the future

3. Next Steps

Documents

Purpose, Vision, Values and Business Model “ Only a commitment by all the team will bring SAI Global’s vision alive” Ross Wraight CEO February 2007 APPLIED