AEA Annual Results 31 March 2007

1. AEA Annual Results 31 March 2007 Andrew McCree and Alice Cummings 14th June, 2007 Linklaters, One Silk Street, London

2. Group highlights • Financial performance • Turnover up 35% • Adjusted Operating Profit up 121% • Good operating cash performance • Net debt has reduced by £7.9m to £21.4m • Good market • Energy & climate change • Orders up 26% to £91m • Growth strategy • Organic and acquisition • Successful disposal of non-core businesses to Vision Capital • Management • Significant strengthening of the management team

3. Financial review Alice Cummings, CFO 14th June 2007

4. Financial summary

5. Adjusted Operating Profit • Central costs reduction programme achieved • Annualised run rate of £3.0m • 48 staff have left

6. PBT

7. Cash flow

8. Cash flow from operations

9. Legacy provisions

10. Pension benefit liability

11. Summary • Financial Performance • Adjusted Operating Profit up • Profit to cash conversion 94% • Central cost reduction achieved • Balance Sheet • Good headroom on facilities • Legacy provisions down to £26.0m • Going Forward • Continued cost control • Increasing investment for growth

12. Business review Andrew McCree, CEO 14th June 2007

13. Performance highlights Sales • Sales up 35% from £55.8m to £75.2m Orders • Orders up 26% from £72.5m to £91.0m • Secured sales for the new year 57% (2006: 52%) • Pipeline ~ £220m Utilisation • 83% • Half year 78%

14. AEA – Markets and customers • Markets • Energy • Air quality • Resource efficiency – waste policy • Transport • Knowledge management • Customer base • 76% Government • 5% Devolved Administrations • 13% Private sector • 6% International

15. Contract life cycle Technical committees Policy Contract Life Cycle Programme management Policy implementation Commoditised programme management

16. UK highlights Policy support • Defra: Market transformation programme • DfT: Transport environmental impacts • TFL: London low emission zone scientific framework Policy implementation • Carbon Trust: Applied research portfolio management • Defra: Envirowise England • Defra: National air emissions inventory • Defra: Construction waste platform • DfT: SAFED for vans • DTI: Emerging energy technologies programme • DTI: Knowledge transfer partnerships programme • Scottish Executive: Air quality archive • ScottishExecutive: Envirowise Scotland Private sector • Big Lottery Fund: Research grant programme

17. EC and international highlights Policy support • Sales to the EC rose by 34% from £3.5m to £4.7m • Major energy security project • Ten new environmental policy support contracts Policy implementation • Energy and Environment Programme for Chinese Government • UK-Russia Closed Cities Partnership • Impacts of Climate Change on Chinese agriculture

18. Growth update

19. A growing market Global drivers • Climate change • Energy security EU • Enlargement • Romania

20. Growth - organic & acquisitions Organic – White Paper • Energy efficiency & carbon management • Carbon trading and reduction • Government estate • Resource efficiency • Low carbon transport Organic – other • Scotland & Wales • EU expansion and aid • Acquisitions • Energy, environment, buildings & transport consultancies • Policy, programme management & technical services • Quality of earnings/clients – integration risk • Good funnel – strong prospects in US, UK

21. Strategic goals Double revenues • Aggressive organic growth • Focused acquisition programme Sustain mid-teen margins • Increase utilisation • Maintain cost control Enhance management • Focus on commercial & marketing skills

22. Summary • Good market • Focus on organic & acquisition growth • Management team strengthened • Performance is getting stronger

23. AEA Annual Results 31 March 2007 Andrew McCree and Alice Cummings 14th June, 2007 Linklaters, One Silk Street, London