Michael Jeffries Chairman

1
Introduction

• Michael Jeffries Chairman

2
Agenda

• Highlights
• Financial Review
• Operational Review
• BVT Surface Fleet
• Strategy

3
Highlights

• Group Turnover 1,201m 20
• Underlying PBT 89.1m 20
• PBT 71.3m 33
• Underlying Earnings Per Share 35.5p 15
• Closing Order Book 4,851m 32
• Total Dividend 13.1p 11
• Operating Cash/ Cash Conversion 66m 81

Includes share of turnover from equity
accounted JVs Excludes intangible
amortisation Before intangible amortisation
4
Long Term Growth
Profit
130 120 110 100 90 80 70 60 50 40 30 20 10
Turnover

m
Underlying PBT Under IFRS Underlying PBT Under
UK GAAP Turnover
5
Financial Review

• Phil Harrison

6
Highlights

• Group Turnover 1,201m 20
• Underlying PBT 89.1m 20
• PBT 71.3m 33
• Underlying Earnings Per Share 35.5p 15
• Closing Order Book 4,851m 32
• Total Dividend 13.1p 11
• Operating Cash/ Cash Conversion 66m 81

Includes share of turnover from equity
accounted JVs Excludes intangible
amortisation Before intangible amortisation
7
Profit and Loss Account
Financial Review
8
Segmental Reporting
Financial Review
9
Segmental ReportingTurnover
Financial Review
VT Services Inc 241.4m
VT Support Services 483.8m
20
41
1,201.0m
10
VT Education Skills 124.9m
9
VT Communications 107.2m
20
VT Shipbuilding 243.7m
March 2007
March 2008
10
Segmental ReportingTurnover Growth Analysis
Financial Review
M
85.2
1201.0
111.2
1004.6
Mar 2007
Mar 2008
Acquisitions
Organic
11
Segmental ReportingTurnover Growth Analysis
Financial Review
1,201.0
M
79.7
47.7
48.2
12.8
1,004.6
8.0
Support Services
Comms
Services Inc
Education Skills
Shipbuilding
Mar 2007
Mar 2008
12
Segmental ReportingUnderlying Operating Profit
Growth Analysis
Financial Review
M
99.0
4.1
12.4
82.5
Mar 2007
Mar 2008
Acquisitions
Organic
13
Segmental ReportingUnderlying Operating Profit
Growth Analysis
Financial Review
M
99.0
3.2
6.2
3.3
1.8
2.0
82.5
Support Services
Comms
Services Inc
Education Skills
Shipbuilding
Mar 2007
Mar 2008
14
Underlying Tax Rate
Financial Review
15
Earnings per Share/Dividends
Financial Review
16
Balance Sheet
Financial Review
17
Net Debt
Financial Review
18
Net Operating Cashflow
Financial Review
19
Order Book
Financial Review
4.9bn
VT Services Inc 660m 14
VT Education Skills 210m 4
VT Communications 385m 8
Joint Ventures
VT Support Services 3,190m 65 (inc Joint
Ventures - 1.7bn)
VT Shipbuilding 455m 9
20
Order Profile
Financial Review

• Total order book 4.9 billion

m
21
Operational Review
22
VT Communications
Operational Review

• Market Trends
• Spend on National Security remains buoyant - 10
  growth pa
• Broadcasters continue to spend on digitalisation
  - c300m pa
• Shortwave market flat
• Defence outsourcing of comms IT

23
VT Communications
Operational Review

• Highlights
• Discussions on Government contract extension to
  2015
• DHFCS delivered 6 months early on budget
• Working with Arqiva on Digital TV infrastructure
• Airtanker MFTS contract - 100m

24
VT Education Skills
Operational Review

• Market Trends
• Education Budget continues to grow - 5 pa
• Train to Gain set to increase from 500m to c1bn
  pa over next 3 yrs
• BSF projects continue to grow - c3bn pa
• Potential break up of LSC - 2010
• Careers Services increasingly being taken
  in-house

25
VT Education Skills
Operational Review

• Highlights
• Lewisham BSF commenced - up to 325m
• Waltham Forest School Improvement project - 32m
  over 4 yrs
• New business wins in Automotive training - 6m pa
• Improving profitability

26
VT Services Inc
Operational Review

• Market Trends
• Military commitments still driving high levels of
  operational requirements
• 18 increase in Operating Maintenance (OM)
  budget up to 2013
• More efficient management of OM budget
• Reset of equipment

700 600 500 400 300 200 100 0
bn
US Defense budget Source Janes Defence
Budgets DoD Budget Supplemental Budget Atomic
Energy Activities
2001 2003 2005 2007 2009 2011
2013
27
VT Services Inc
Operational Review

• Highlights
• Acquisition of VT Aepco brings higher value
  technical services
• VT Griffin awarded US Armys Contractor of the
  Year (DPW)
• Continued margin improvement now at 3.8
• Continued growth towards a 1bn business

4 3 2 1 0
margin
2005 2006 2007 2008
28
VT Support Services
Operational Review

• Market Trends
• Government budget pressures drive outsourcing
• Increased availability contracting of assets
• Complex projects require OEM relationships
• Airtanker, MFTS, SAR-H

45 40 35 30 25 20 15 10 5 0
bn
UK Defence budget Source Janes Defence
Budgets MoD Budget Supplemental Budget
2001 2003 2005 2007
2009
29
VT Support Services
Operational Review

• Highlights
• FSTA signed 27 March 2008 - 1bn
• UK MFTS contract due for signature shortly
• Training maintenance contract commenced - 32m
• Sea King Search and Rescue sites implemented -
  40m
• Continued progress on major bids
• SAR(H), New Dimensions, WFM
• Strong performances from FSL
  Flagship

30
Flagship Training
Operational Review

• Market Trends
• Engineering Apprentice Training market expanding
  - double by 2011
• RN contract due for renewal 2013
• Overseas navy training requirements increasing
• Training for maritime market
• Highlights
• British Energy contract signed - 10m
• FM contract Fire Control Centres - 30m
• Integration planning completed

31
VT Nuclear Services
New Markets

• Market Trends
• 1.1 billion pa UK market
• UK decommissioning cost of 75 billion to 2035
• Opportunities for new build - c3bn per unit
• International potential
• Highlights
• Integration underway
• Positive response from stakeholders

32
VT Environmental Engineering
New Markets

• Market Trends
• Diversion from landfill to treatment plants
• 50bn over 10 years
• Government municipal waste recycling target of
  50 by 2020
• Highlights
• Wakefield PFI - 700m
• 200,000 tonnes pa
• 25 year contract
• 4 other opportunities being assessed

33
VT Shipbuilding
Operational Review

• Market Trends
• MoD Future Surface Combatant requirement
• Moves to protect Exclusive Economic Zones
• Demand for OPVs to protect offshore resources
• Oil producing nations affordability

34
VT Shipbuilding
Operational Review

• Highlights
• Apr 07 - Contract with TT to build three OPVs -
  184m
• Cut steel on first Omani OPV Oct 07
• Cut steel on first TT OPV Jan 08
• CVF engineering contract on time and to budget
• Libyan and Saudi bids submitted

35
BVT Surface Fleet
36
Update

• Integration planning completed
• CEO designate
• Full management team in place
• Awaiting Government approval for CVF
  manufacturing
• MoD investment in CVF equipment facilities

37
BVT Surface Fleet Segmental
Financial Review

Excludes 50 of Flagship which will be acquired
by VT
38
Strategy
39
Business Model
40
VTs Focus

• VT is an engineering based support services
  business
• Provides business critical support to our
  customers
• Defence support services will remain at our core
• We can grow our business significantly using this
  model

41
Outlook

• Execution of JV
• Signing of MFTS contract
• 4.9bn order book
• Continue to grow services business
• Business in good shape

42
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43
Appendix 1 Additional Financial Information
44
Contract PortfolioValues over 50m
Year
08 10 12 14 16 18 20
22 24 26 28
VT Communications VLF DHFCS BBC GCHQ FSTA VT
Education and Skills VT FourS Greenwich Lewisham V
T Services Inc Army Material Command Fort
McCoy NASA Camp Le Jeune Kings Bay SPAWAR
2030
2035
2032
45
Contract PortfolioValues over 50m
Year
08 10 12 14 16 18 20
22 24 26 28
VT Support Services LAFT TTSP MFTS FSTA Sea King
Maintenance Allenby Connaught Whitefleet ALC (C
Vehicles) Arborfield Bordon TMASS ESTSTO ASTUTE Wa
kefield
2035
2037
2032
46
Contract PortfolioValues over 50m
Year
08 10 12 14 16 18 20
22 24 26 28
VT Support Services Metropolitan Police British
Airways Cardiff Gate Severn Park Firefighting
Training
2030
2037
47
FSTA Consortium Members
FSTA

• Infrastructure, IT, ground services
• Aircraft, support
• Aircraft systems, support
• Engines, support
• Flight refuelling equipment

48
Segmental ReportingOperating Margin
Financial Review
49
Segmental ReportingUnderlying Operating Profit
Financial Review
VT Services Inc 9.2m
VT Support Services 50.2m
VT Education Skills 5.6m
9
6
18
99.0m
51
VT Communications 17.7m
16
VT Shipbuilding 16.3m
March 2007
March 2008
50
Net Debt Movement
Financial Review
51
Pensions Under IAS 19
Financial Review
52
Appendix 2 Corporate Responsibility
53
Corporate Responsibility
54
Corporate Responsibility
55
Corporate Responsibility
56
Corporate Responsibility
57
Corporate Responsibility
58
Corporate Responsibility
59
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