Saunders International Limited

August 2010

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SAUNDERS INTERNATIONAL LIMITED 2

IMPORTANT NOTICE This presentation has been prepared by Saunders International Limited (“Saunders”) as a summary of the Company and its

operations and for general information purposes only.

This presentation is not and should not be considered as an offer or invitation to subscribe for or purchase any securities inSaunders, or as an inducement to make an offer or invitation with respect to those securities. No agreement to subscribe forsecurities in Saunders will be entered into on the basis of this presentation.

Saunders has not audited or investigated the accuracy or completeness of the information, statements and opinions containedin this presentation. Accordingly, to the maximum extent permitted by applicable laws, neither makes any representation andneither can give any assurance, guarantee or warranty, express or implied, as to, and neither takes any responsibility andassumes liability for, the authenticity, validity, accuracy, suitability or completeness of, or any errors in or omission from, anyinformation, statement or opinion contained in this presentation.

You should not act or refrain from acting in reliance on this presentation material. This overview of Saunders does not purport tobe all inclusive or to contain all information which its recipients may require in order to make an informed assessment of theCompany’s prospects. You should conduct your own investigation and perform your own analysis in order to satisfy yourself asto the accuracy and completeness of the information, statements and opinions contained in this presentation and making anyinvestment decision.

The contents of this presentation are confidential. This presentation is being provided to you on the condition that you do notreproduce or communicate it or disclose it to, or discuss it with, any other person without the prior written permission of theCompany.

The presentation contains certain forward-looking statements which have not been based solely on historical facts but, rather,on Saunders’s current expectations about future events and on a number of assumptions which are subject to significantuncertainties and contingencies many of which are outside the control of Saunders and its directors, officers and advisers.

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SAUNDERS INTERNATIONAL LIMITED 3

BUSINESS DESCRIPTIONThe business was founded in 1951 and specialises in the design, construction and maintenance of steel bulk liquid storage tanks.

Saunders’ products and services are provided via two inter related models:− Design & Construction; and− Facilities Maintenance.

DESIGN & CONSTRUCTION FACILITIES MAINTENANCE

Activities The design and construction of steel bulk liquid storage tanks.

The maintenance of steel bulk liquid storage tanks, focusing on repair and refurbishment of tanks for the petroleum industry.

Key Industry Sectors − Oil and gas industry− Water and waste water infrastructure

sector− Industries which manufacture, import,

distribute and use bulk chemicals− Mining and mineral processing industry

− Petroleum refineries and distributors

− Oil and gas producers and processing facilities

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SAUNDERS INTERNATIONAL LIMITED 4

PROVEN CREDENTIALS− Reputation for quality and performance− Over 50 years of industry experience− Principal provider of storage tank maintenance services to 6 of Australia’s 7 major operating petroleum refineries− National capability− A complete design, construction and maintenance solution for clients− Led by a committed and experienced management team

BLUE CHIP CLIENT BASE WHICH INCLUDES:− BHP Billiton Mitsubishi Alliance, Bilfinger Berger, BP Australia, Caltex, Clough Engineering, John Holland, Leighton,

Mobil Australia, Shell Australia, Sydney Water, Transfield Services, Vopak, WorleyParsons

SUSTAINABLE RELATIONSHIPS:− Long history of repeat business with core group of key customers

ATTRACTIVE GROWTH OUTLOOK AND OPPORTUNITIES− Strong demand for tank design, construction and maintenance services− Possible expansion of design and construction operations into Western Australia− Expansion of maintenance services to other industries− Strategic acquisitions

INVESTMENT HIGHLIGHTSF

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SAUNDERS INTERNATIONAL LIMITED 5

INDUSTRY OVERVIEW

DESIGN & CONSTRUCTION− Saunders is one of a limited number of engineering firms in Australia with a national capability in the

design and construction of steel bulk liquid storage tanks and storage tank facilities.− Saunders is the largest Australian owned participant in the domestic market second only to a

subsidiary of Chicago Bridge & Iron Company N.V., a NYSE listed company.

FACILITIES MAINTENANCE− In Australia, Saunders is the market leader in the provision of pro-active maintenance and repair

services for steel bulk liquid storage tanks to the petroleum refining and storage industry.− Saunders is the principal provider of tank maintenance services to 6 of Australia’s 7 major operating

petroleum refineries.

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SAUNDERS INTERNATIONAL LIMITED 6

INDUSTRY DRIVERS

Demand for storage tank design, construction and maintenance services is expected to be driven by:

DESIGN & CONSTRUCTION− Development of new and existing oil and gas reserves− Investment in petroleum storage and distribution infrastructure due to the continuing growth in

demand for petroleum based fuels− Development of new water storage, harvesting and recycling infrastructure − Development and expansion of mineral processing capacity and other mining associated industries

FACILITIES MAINTENANCE− Aging population of steel bulk liquid storage tanks and facilities− Heightened environmental awareness and accountability− The trend towards outsourcing

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SAUNDERS INTERNATIONAL LIMITED 7

DESIGN & CONSTRUCTION

RECENT PROJECTS:

New Water Storage for Sydney WaterRouse Hill, NSWValue $9M40ML Storage Tank, 65m diameter

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SAUNDERS INTERNATIONAL LIMITED 8

DESIGN & CONSTRUCTION

RECENT PROJECTS:

Terminal Storage for VopakBotany, NSWValue $30MPhase I & Phase II – 9 x 26 meter high Storage Tanks

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SAUNDERS INTERNATIONAL LIMITED 9

DESIGN & CONSTRUCTION

RECENT PROJECTS:

Other Projects:Ammonia Tank, Moranbah, QLDAcid Tank, Gladstone, QLDMine Process Tanks, Moolarben, NSW

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SAUNDERS INTERNATIONAL LIMITED 10

FACILITIES MAINTENANCECOMMERCIAL MODELTerm Contract:

− Usually based on a management fee and cost reimbursable components. − Typically for 1 to 5 years with options to extend

Lump sum:− One off projects or specifically defined scope of work

Owner/Operator Location

Maintenance services provided

since

Contract nominatedend date 3

Oil RefineriesCaltex Australia Limited 1 Kurnell Refinery, NSW 1996 2011

Caltex Australia Limited 1 Lytton Refinery, QLD 2000 2011

Shell Refining Australia Pty Ltd Clyde Refinery, NSW 2000 2011

Mobile Refining Australia Pty Ltd 1 Altona Refinery, VIC 1996 No fixed term

BP Australia Pty Ltd Bulwer Island Refinery, QLD 2010 2013

BP Australia Pty Ltd Kwinana Refinery, WA 2010 2013

Oil and Gas Production and Distribution FacilitiesBP Australia Pty Ltd Australian Terminals 2010 2013

Mobile Oil Australia Pty Ltd Australian Terminals 2006 2011

Santos Limited 1 Central Australia 2005 2011

Shell Refining Australia Pty Ltd Gore Bay Terminal, NSW 2000 2011

**

*

* Agreed, awaiting formal documentation

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SAUNDERS INTERNATIONAL LIMITED 11

COMPETITIVE ADVANTAGE

Saunders’ competitive advantages are based on:

Providing value to clients through specialist knowledge and experience in storage tank design, construction and maintenance, which gives it the ability to:

− deliver innovative and quality products and services; and− provide a complete solution for clients seeking design, construction and maintenance services.

Proven ability to operate effectively in a broad range of geographical locations, sometimes in challenging and remote environments; and

High barriers to entry

An experienced management team with an extensive array of technical and project management skills.

Long Term client relationships

Ability to operate within various commercial models i.e. Lump Sum, Reimbursable, Target Lump Sum etc.

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SAUNDERS INTERNATIONAL LIMITED 12

FINANCIAL METRICSKEY FINANCIAL

STATISTICS FY2007* FY2008 FY2009 FY2010

Revenue $34.7 m $61.6 m $55.7 m $44.5 m

EBITDA $6.3 m $8.6 m $5.3 m $6.0 m

EBITDA % margin 18% 14% 10% 13.5%

EBIT $5.7 m $7.8 m $4.4 m $5.2 m

NPBT $6.1 m $8.4 m $4.8 m $5.7 m

NPAT $4.3 m $6.2 m $3.4 m $4.0 m

EPS 6.7 cents 8.6 cents 4.3 cents 5.2 cents

FY 2010 Dividend

Interim Dividend per Share (fully franked) 1.0 cent 1.0 cent 1.0 cent

Final Dividend per Share (fully franked) 2.0 cents 2.0 cents 3.0 cents

*Saunders listed on ASX in November 2007

• Fall in revenue due to delays in projects proceeding which delayed award of tank projects

• Rise in NPAT due to improved execution of several projects which resulted in better than budget performance

• Recurring revenue streams steady

• Increased dividend

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SAUNDERS INTERNATIONAL LIMITED 13

BALANCE SHEETBALANCE SHEET ($ Million) 30 JUNE 2010

Assets

Cash 20,060

Trade receivables 4,196

Plant and equipment 1,760

Deferred tax assets 915

Others 758

Total Assets 27,689

Liabilities

Payables 6,250

Tax Liabilities 805

Provisions 1,213

Total Liabilities 9,243

Net Assets 18,446

Strong cash reserves No debt NTA per Share of approx. 22.27 cents

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SAUNDERS INTERNATIONAL LIMITED 14

FINANCIAL PERFORMANCE

BUSINESS STRATEGY

Design & Construction:− Concentrate on work with higher margins by undertaking larger and more complex projects

Facilities Maintenance: − Broaden and grow the business unit’s revenue base

Strategic Acquisitions: − Intensify search for acquisitions to fit with existing business

− Capital required already available minimizing need for debt or equity

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SAUNDERS INTERNATIONAL LIMITED 15

FINANCIAL PERFORMANCE AND OUTLOOK

PERFORMANCE• Revenue down• PAT up due to enhanced project performance• Maintenance services steady• Maintain organization and skills base

OUTLOOK• Confidence returning but still some hesitancy• Up to $30m of Tank Projects to be awarded in H1• Continue emphasis on servicing blue chip clients• Key clients trending to quality subcontractors

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SAUNDERS INTERNATIONAL LIMITED 16

ATTRACTIVE GROWTH OUTLOOK & OPPORTUNITIES

Saunders believes it has strong growth opportunities driven by the following factors:

Encouraging signs of a return of strong demand for tank design, construction and maintenance

services;

Possible geographical expansion of its design and construction operations into Western Australia;

Potential expansion of its maintenance services to other industries, in particular the mineral

processing industries.

Possible strategic acquisitions to complement its existing skills base and expand the range of

services provided to clients.

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SAUNDERS INTERNATIONAL LIMITED 17

SUMMARY

Proven credentials

Blue chip client base

National capability

Strong growth prospects

Experienced board

Attractive financial fundamentals

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SAUNDERS INTERNATIONAL LIMITED 18

BOARDMr Timothy Burnett - Chairman & Non-Executive Director

• More than 30 years experience in the engineering and construction industry.• Managing Director of Saunders for 15 years.• Before joining Saunders he was a senior manager with Brown & Root Inc where he managed the construction of

marine oil and gas facilities in Europe, Asia and Australia• Holds a Bachelor of Engineering (Civil) degree from Melbourne University and a MBA degree from Harvard

University.

Mr John Power - Managing Director• More than 30 years experience in the Engineering and Construction industry. • Work for Chicago Bridge and Iron N.V. (CBI) for 25 years. Held various positions, including Director of CBI’s

Australian operations for 7 years.• Holds a Bachelor of Engineering degree from University College Cork, Ireland.

Mr David Smart – Non-Executive Director• Has held various finance, company secretary and board positions with several listed industrial companies. • Previous Finance Director of Metal Manufactures Ltd and Treasurer and CFO of Tubemakers of Australia Ltd.• Currently a non executive director of eServ Global Ltd• Holds a Bachelor of Commerce (Accounting) degree and a MBA from the University of New South Wales.

Dr Kim Tronson – Non-Executive Director• More than 30 years senior executive experience in the coal and transport industries• Former managing director of Coal and Allied Industries Ltd (1997 to 2001) and a general manager of Kembla Coal

and Coke (1996 to 1997), both companies being part of the Rio Tinto Limited group.• Since 2002 he has been a non-executive director of leading software company Mincom Limited• Holds a Bachelor of Science (Hons) from Australian National University and a PhD in Mathematics from Flinders

University

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