Cape plc © 2012

Interim Results30 August 2012

Joe OatleyChief Executive

Richard Bingham Chief Financial Officer

Cape plc © 2012

Important notice

This document has been prepared by Cape plc (the Company) solely for use at presentations held in connection with the Interim Results announcement of 30 August 2012. The information in this document has not been independently verified and no representation or warranty, express or implied, is made as to, and no reliance should be placed on, the fairness, accuracy, completeness or correctness of the information or opinions contained herein. None of the Company or any of its affiliates, advisors or representatives shall have any liability whatsoever (in negligence or otherwise) for any loss whatsoever arising from any use of this document, or its contents, or otherwise arising in connection with this document.

This document 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.

Certain statements in this presentation are forward looking. 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 speak as only of the date of this presentation.

The Company is under no obligation to update or keep current the information contained in this presentation, including any forward looking statements, or to correct any inaccuracies which may become apparent and any opinions expressed in it are subject to change without notice.

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Cape plc © 2012

Headlines

• Challenging first half, but solid year-on-year revenue growth of 11%

• UK revenue increased by 12% (9% organic) to a record £153m largely driven by additional offshore maintenance work for North Sea operators

• Adjusted PBT of £12.0m (H1 2011: £34.0m)

• Adjusted PBT impacted by:– Operational weakness on the Arzew project in Algeria– Margin reduction in the Far East / Pacific Rim– Anticipated margin contraction in Middle East

• Substantial forward order book of £920m (30 June 2011: £830m)

• Interim dividend maintained at 4.5p per share (H1 2011: 4.5p)

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FinancialReview

Cape plc © 2012

Summary income statement

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£m   H1 2012    H1 2011           

Revenue   371.6 335.0 +11%Adjusted operating profit   16.1 38.5 -58%Adjusted operating margin   4.3%   11.5% -720 bps

     

Other items   (0.6)   (2.6)JV loss   (0.3)   (0.3)

     

Profit before interest & tax   15.2   35.6 -57%Net finance charges   (3.3)   (5.0)Unwind of discount relating to asbestos provision   (2.0)   (2.0)

     

Profit before tax   9.9 28.6 -65%     

Tax charge   (2.0)   (6.0)Profit after tax   7.9 22.6 -65%

     

Adjusted PBT   12.0 34.0 -65% 

Adjusted diluted earnings per share   7.0 20.9 -67% 

Dividend per share (p)   4.5 4.5 Maintained     

Cape plc © 2012

Adjusted PBT bridge H1 2011 to H1 2012

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Reported at constant currency

Cape plc © 2012

Cash Flow

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£m H1 2012 H1 2011 FY 2011Adjusted EBITDA 24.4 47.4 96.0Other non-cash items 1.2 1.1 0.3Working capital movement (26.6) (37.0) (43.6)Capital expenditure (net of disposals) (4.6) (10.6) (20.0)Operating cashflow (5.6) 0.9 32.7Operating cashflow to operating profit -35% 2.3% 42%

Tax (4.8) (4.0) (6.4)Net interest (3.9) (2.7) (6.7)Free cash flow (14.3) (5.8) 19.6Dividend paid to shareholders (12.1) (11.4) (18.0)Acquisitions (4.5) - (4.3)Refinancing & Listing costs - (5.1) (5.1)Other movement in net debt 1.0 (0.3) 1.5Movement in net debt (29.9) (22.6) (6.3)

Opening net debt (59.2) (52.9) (52.9)

Closing net debt (89.1) (75.5) (59.2)

Cape plc © 2012

Working Capital

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• Working capital increase of £25.4m in H1

• Net working capital to sales ratio increased to 20%, ahead of the Group’s historical 13% - 14% range driven by:– a specific large project in Asia– investment in materials in the Arzew

contract– an across the portfolio increase in

working capital investment in the Gulf/Middle East Region as major projects ramp up

– Seasonal outage programme in the UK Region (expected to reverse in H2)

Cape plc © 2012

Balance Sheet

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£m H1 2012 H1 2011 FY 2011

Intangibles 247.9 244.7 246.7

Managed assetsTangible fixed assets 156.4 159.3 160.8Debtors & WIP 274.5 231.8 244.5Other net working capital (127.4) (117.2) (122.8)

Total managed assets 303.5 273.9 282.5

Provisions, tax and other (28.7) (26.3) (31.6)Net IDC liability (34.5) (30.5) (32.3)

488.2 430.8 465.3

Funded by:Debt/(funds) 89.1 75.5 59.2Shareholders funds 399.1 386.3 406.1

Total 488.2 430.8 465.3

Gearing 22.3% 19.5% 14.6%

Cape plc © 2012

Balance Sheet and funding

• Balance sheet remains robust

• Anticipate usual seasonal H2 working capital inflow

• £220m syndicated debt facility in place until June 2015 provides…. ample headroom both within facility and facility covenants

• Interim dividend maintained

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Operating Review

Cape plc © 2012

UK

G/ME

CIS/NA

FE/PR

Order Intake

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Key contract awards

Multidiscipline site service award from SABIC UK

Environmental services for Total on Elgin platform in North Sea

Campaign work for BP on a number of North Sea assets

Multiple contracts on the Barzan gas project in Qatar

Insulation and coating services award from BAPCO

Multidiscipline service contracts for the Bayu-Undan field in the Timor Sea

£150m

£75m£21m

£148m

H1 Group order intake £372m

Cape plc © 2012

Order Book

30-Jun-1231-Dec-1130-Jun-11

£920m£920m

£830m

£920m

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Cape plc © 2012

United Kingdom

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H1 2012  H1 2011 Growth   

Revenue 153.0  136.2 12%

Adjusted Operating profit 14.6  12.8 14%

Adjusted Operating margin % 9.5%  9.4%

Note: Includes acquisitions

Revenue by type

Maintenance

Projects

Revenue by market

Robust revenue growth primarily driven by offshore sector

Organic growth in operating profit of 11%

Strong performance from environmental business

York Linings acquisition performing ahead of expectations, including $6m award in Abu Dhabi

Offshore Oil & Gas

Onshore Oil & Gas

Power

Chemical

Steel

Other

Cape plc © 2012

Gulf / Middle East

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Strong revenue growth driven mainly by onshore oil & gas projects in the Southern Gulf

Anticipated margin reduction due to maturing nature of the market

New opportunities being explored in India and Iraq

Revenue by type

Maintenance

Projects

Revenue by market

H1 2012  H1 2011 Growth   

Revenue 75.5  66.1 14%

Adjusted Operating profit 12.3  16.1 -24%

Adjusted Operating margin % 16.3%  24.4%

Offshore Oil & Gas

Onshore Oil & Gas

Chemical

Other

Cape plc © 2012

CIS, Mediterranean & North Africa

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Revenue reflects anticipated reduced activity levels in Kazakhstan

Strong margin expansion

Azerbaijan project awards delayed

Revenue by type

Maintenance

Projects

Revenue by market

Offshore Oil & Gas

Onshore Oil & Gas

H1 2012  H1 2011 Growth   

Revenue 24.1  28.3 -15%

Adjusted Operating profit 4.6  4.3 +7%

Adjusted Operating margin % 19.1%  15.2%

Notes: 1. Excludes Arzew project in Algeria (£14.0m) provision 2: Includes JV (£0.3m)

Cape plc © 2012

Update on Arzew project in Algeria

Background

Awarded c.€27m contract in August 2010 for the Sonatrach GL3-Z LNG Project in Arzew, Algeria. Cape scope is for the total insulation works (insulation, fire-proofing & scaffolding)

Detailed project cost review in May 2012 identified a significant overspend, resulting in a £14m provision being recognised in H1 2012, as previously disclosed

Current Position

Experienced Cape leadership now in place

Substantial increase in skilled insulation resources now working on site replacing unproductive labour

Project management including improved monitoring and controls in place

Full inventory check completed – no new issues identified

Early days; good progress being made

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Cape plc © 2012

Far East / Pacific Rim

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Very strong growth in offshore business

Revenue growth more than offset by margin decrease

Fall in operating margin driven by both gross margin decline and overhead increase

Hong Kong Fuji and Shoreguard acquisitions performing well

Revenue by type

Revenue by market

Offshore Oil & Gas

Onshore Oil & Gas

Power

Other

Minerals & Mining

H1 2012  H1 2011 Growth   

Revenue 119.0  104.4 14%

Adjusted Operating profit 4.5  9.1 -51%

Adjusted Operating margin % 3.8%  8.7%

Note: Includes acquisitions

Maintenance

Projects

Other

Cape plc © 2012

CEO review – early findings

• Solid underlying business; local operational management generally strong

• Safety first ethos and culture

• Regional businesses very autonomous with a strong entrepreneurial culture

• Immediate focus needs to be on operational improvement to establish platform for future growth

• Arzew project improving but still early days

• Australian business needs specific attention

• Long-term market demand drivers are strong

• Range of opportunities exist for growth in the medium to long-term; development of growth strategy will follow

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Cape plc © 2012

Summary& Outlook

Cape plc © 2012

Summary & Outlook

• Challenging period but continued revenue growth, substantial order book and maintained interim dividend

• Strong fundamental business - immediate focus is to ensure we have the organisational structure and operational processes to enable the delivery of future profitable growth

• With a strong order book giving good near-term visibility, the Board is confident of meeting revised expectations for the year ending 31 December 2012

• Over the medium and longer term, it is expected that demand for the Group’s services will continue to grow

• The Group is well positioned to deliver long-term earnings growth and the Board looks to the future with confidence

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Cape plc © 2012 22

Cape in brief

Cape plc © 2012

Cape in briefOur international coverage extends from the UK, through the Gulf/Middle East, CIS, Mediterranean and North Africa and into the Far East/Pacific Rim

2424

United Kingdom

People

>4,100

FY ‘11 Revenue

£299.1m

Gulf/Middle East

People

c.8,000

FY ‘11 Revenue

£132.1m

CIS & N. AfricaPeople

>2,200

FY ‘11 Revenue

£54.5m

Far East/Pacific Rim

People

c.4,700

FY ‘11 Revenue

£236.8

Group

People

>19,000

FY ‘11 Revenue

£722.5m

Cape is an international leader in the provision of essential non-mechanical industrial services focused on the energy and natural resources sectors

Cape plc © 2012

Our business

For project work, Cape is typically commissioned for works on major Capex projects in the Oil and Gas, Mining and utilities sectors.

Once a build project is completed, Cape is well positioned to secure long-term maintenance and campaign contracts that follow.

Construction (Project) Support Services

Maintenance Support Services Typically multiple-year agreements of 3 – 5 years duration,. The Group has historically

enjoyed very high contract renewal rates due in large part to the embedded nature of the services.

These services form a critical part of the ongoing fabric maintenance of our clients’ facilities. The successful execution of recurring maintenance helps Cape’s clients avoid unplanned down-time and ultimately optimises the efficiency of their facilities.

Drivers of growth opportunities include: Commissioning of new plants in growth markets (LNG/GTL in Far East/Pacific Rim and

downstream in Gulf/Middle East Increasing maintenance requirements of ageing infrastructure in mature markets Increasing focus on safety by plant operators

Other Includes materials and equipment sales and short-term hire of equipment.

42%

55%

3%

We offer a range of multi-disciplinary services which includes access systems, insulation, refractory linings, painting, coatings, blasting, industrial cleaning, training and assessment throughout the lifecycle of large secure industrial assets

% H1 ‘12

revenue

Cape plc © 2012

Major Engineering and Construction (E&C) contractors

Our client base is diversified & well balanced

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Plant operators in the oil and gas, chemical,

power generation, minerals and mining,

chemical and steel sectors

Cape provides access, insulation, refractory,fireproofing and coatings during the crucial buildphase.

Cape plc © 2012 27