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Emerging Leaders Conference May 2006

The Gateway to World Business. Emerging Leaders Conference May 2006. Our Business SAI Global is a n international professional services company operating in the international standards, regulatory and compliance markets. SAI provides a gateway for:

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Emerging Leaders Conference May 2006

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  1. The Gateway to World Business Emerging Leaders Conference May 2006

  2. Our Business SAI Global is an internationalprofessional services company operating in the international standards, regulatory and compliance markets. SAI provides a gateway for: - Business, legal, regulatory, technical and standards information - Regulatory, risk and compliance training and awareness - Business improvement, training and consulting services - Assurance services in the area of standardization, conformity assessment and business improvement

  3. Business Summary • SAI is a top 300 company listed on the ASX with a market capitalisation $360M, May 4, 2006 • 2004/5 revenues A$106 million • 2004/5 EBITDA of A$19.4 million • After full year of acquisitions 2006/07 revenue in excess of A$190 million • 740 staff with 281 offshore • Physical operations in Europe, United States, Thailand, Indonesia, Mexico, India, Australia and New Zealand • Customers across the world • 70% of revenue is annuity type • Capex is small

  4. Business Growth

  5. 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, Thomson and national standards bodies • Numerous competitors in regulatory compliance space but few offer SAI’s end-to-end solutions • The training and consulting market is highly fragmented and SAI has numerous competitors • In the certification space SAI competes with organizations such as SGS, Lloyds Register, BSI & Bureau Veritas

  6. Industry Demand Drivers Greater demand for standards related training and assurance services Increasing industry turnover Regulation Demand to manage risks and compliance Globalization Demand for supply chain confidence Demand for continuous business improvement

  7. 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

  8. Business Model - SAI Global Sources of Intellectual Property Commercialisation of Intellectual Property Professional Services Compliance Services Assurance Services Business Publishing Provide assurance through conformity assessment & certification: (41% of revenue) Enhance through training & consulting services (11% of revenue) Deliver compliance, regulatory awareness solutions (9% of revenue) Publish, Index & distribute (39% of revenue) Develop & license Intellectual Property

  9. Business Overview – Business Mix Revenue by business - pre ILI Revenue by business - post ILI Publishing Assurance Publishing 32% 41% Assurance 39% 45% Compliance 10% Professional Professional Compliance Services Services 9% 13% 11% EBITDA by business - pre ILI EBITDA by business - post ILI Assurance Assurance 26% 33% Publishing Professional 50% Publishing Services 61% 3% Professional Compliance Services 10% 4% Compliance 13%

  10. Strategic Rationale – Geographic Mix

  11. Business Publishing Gateway Build a $100 million plus technical publishing, distribution and information business • Catalogue of more than 700,000 Standards and 150 million database items • Mainly recurrent revenue • Business model produces excellent financial outcomes and is efficient, transportable and scalable • Increasing use of electronic delivery services • Growth opportunity in global Standards and database markets • Penetration of non-traditional markets through Anstat and ILI acquisitions • Aggressive targeting of new business opportunities

  12. Professional Services Gateway 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 • Significant growth in business improvement products • Electronic training model starting to grow strongly (technology now available through compliance services)

  13. Assurance Services Gateway 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

  14. Acquisition History • SAI Global has made 12 acquisitions with seven being completed since listing in December 2003, most recent: • Easy i - May 2005 - A$28.3 million • Anstat - August 2005 – A$50 million • EFSIS December 2005 - A$12 million • CCS March 2006 – A$720 thousand • ILI May 2006 - A$81 million • All acquisitions continue to perform in-line with guidance

  15. ILI Acquisition - Overview • ILI a key part of SAI’s strategic intent to build a A$100+ million revenue, international technical publishing, distribution and information business • Annualized publishing revenues will now exceed A$70 million, up from current A$50 million • Establishes SAI Global as a significant international competitor in the standards and technical information space • Delivers front end to SAI’s business model in Europe and North America • Delivers a major and stable annuity earnings engine • Broadens the product base through database services • Provides the opportunity to tender for major international contracts • Further reduces reliance on individual publishing contracts

  16. ILI Business Overview • ILI is an international standards publishing and database subscription services business • Expected FY2006 revenue of A$20.1 million • 51% from sale of international standards • 49% from database subscription services • Revenue split 1/3 each UK, other Europe and North America • Expected FY2006 EBIT of A$8.4 million • 27% from sale of international standards • 73% from database subscription services • ILI is based in the UK with operations in other parts of Europe and North America • 50 employees (35 in the UK and 15 in the USA)

  17. ILI Business Overview – IP Providers USA Military Specifications and many others

  18. ILI Business Overview – Publications • Sales of standards provide 51% of ILI’s revenue and 27% of ILI’s EBIT • Licences to sell standards are not limited to territory and have different royalty arrangements depending on supplier • Non-exclusive licences with more than 250 international standards bodies including BSI (UK), ASTM (USA) and NFPA • Exclusive distributor of Irish Standards – agreement similar to SAI Global arrangement with Standards Australia • Distributor of USA Military Specifications • Sales are both hard copy and electronic depending on supplier agreements and customer requirements

  19. ILI Business Overview - Databases • Database subscription sales are a major profit driver of the business - 49% of revenue and 73% of EBIT, a trend that is likely to grow • 100% subscription service – provides access to bibliographic searchable databases that allow customers to quickly identify the standard or specification that they require • Key databases are: - Standards Infobase (700,000 Standards) - Metals and Materials Infobases (14,000 related Standards and materials and 70,000 grades) - Eurolaw (Industry treaties, directives, regulation and case law) - Logicom (150 million items) • Logicom currently has only one competitor in the USA government procurement space

  20. Financial Information – ILI Historical Trading and FY2007 Projections 1 Assumes FX rate of A$1 = US$0.74

  21. FY2006 Group Outlook • Existing businesses continue to trade well • Recent acquisitions are trading in-line with guidance provided • More acquisitions possible as part of industry rationalization • More information? Visit www.saiglobal.comor call Investor Relations on +61 2 8206 6863

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