“PROJECTIONS FOR THE 2003/2004 FINANCIAL YEAR ARE STRONG. OUR STRATEGY FOR GROWTH WILL CONTINUE TO FOCUS ON THE UK AND EUROPE AS WELL AS THE DEVELOPMENT OF SERVICES FOR INFRASTRUCTURE PROJECTS.” Ian has Bachelor of Engineering (Hons) and Master of Engineering Science degrees from the University of NSW. He is a Fellow of the Institution of Engineers Australia and a member of ASHRAE, AIRAH and ACEA. He has been with NDY since 1979 and took over as CEO and Chairman from founding partner David Norman in 1996.

THE OPERATING ENVIRONMENT FOR SERVICES CONSULTING ENGINEERS IS CONSTANTLY EVOLVING, CONSTANTLY CHALLENGING. NDY’S FUNDAMENTAL STRATEGY FOR MEETING THESE CHALLENGES IS TO MAINTAIN A VERY STRONG TEAM IN EACH OF OUR OPERATING LOCATIONS AND TO LEVERAGE THE STRENGTH OF THESE LOCAL TEAMS THROUGH OUR OVERARCHING INTERNATIONAL CORPORATE STRUCTURE. THE COMMON OWNERSHIP OF THE PRACTICE ENSURES THAT THIS LOCAL/INTERNATIONAL MATRIX MAINTAINS THE STRONGEST OF BONDS. During the 2002/2003 Financial Year, global markets were impacted by the continuing weakness of the US economy, uncertainty created by the war in Iraq and the SARS crisis. I am pleased to report that NDY was able to meet the macro and micro challenges through the year and post an excellent financial result for 2002/2003. The year saw a continuation of the firm’s contribution to our profession with the recruitment and training of a significant number of new graduate engineers. Continued pressure on margins in all segments of the building services industry has generated reluctance in many quarters to spend money on training. We see such focus on the immediate bottom line as detrimental to the long-term future of the industry, hence our strong commitment to recruitment and continuing development of quality people. We continue to focus on Ecologically Sustainable Development (ESD) as a key component of our endeavours. The property industry professes general commitment to ESD principles but in the majority of cases is unwilling to bear cost premiums or the commercial risks associated with the implementation of radical solutions. NDY has sought to develop integrated ESD solutions that minimise energy consumption and associated greenhouse gas emissions. We have and will continue to work with our clients to ensure the commercial practicality of solutions implemented, pushing the boundaries at every opportunity to increase the acceptance of changes required to enhance ecological sustainability. In this context, we see avoidance of ‘window dressing’ solutions as essential. Projections for the 2003/2004 Financial Year are strong. Our strategy for growth will continue to focus on the UK and Europe as well as the development of services for infrastructure projects. Since opening the London office in late 1998 NDY’s commitment to detailed design and documentation, and our focus on client service have been key differentiators that have fuelled its growth. The London office is now consolidated as a respected service provider across a broad spectrum of the development and construction industry. It is from this solid base that we intend to grow to become a major force in the UK and Europe. NDY has a significant track record in the provision of specialist services for industrial and infrastructure projects. To date, work in these areas has flowed primarily as a result of referrals and relationships developed through our core business building services work. We intend to target these areas as a specific growth opportunity. Through a combination of organic growth and appropriate strategic alliances, we will bring our commitment to quality engineering to this component of the market. As with all areas of our activity, our focus will be on designing services systems that optimise the life cycle costs of our clients’ facilities. As we move through 2003/2004, I am confident that our strategic focus on excellence in our core business, ecological sustainability, growth of our UK operation and expanded capability in Infrastructure Engineering will generate continuing success. We look forward to working with you, our client group and industry colleagues, in meeting the challenges that lie ahead and delivering on the available opportunities. Ian Hopkins Chief Executive Officer