FTSE COMPANY REPORT Share price analysis relative to sector and index performance Costain Group COST Construction & Materials — GBP 0.615 at close 03 August 2020 Absolute Relative to FTSE UK All-Share Sector Relative to FTSE UK All-Share Index PERFORMANCE 03-Aug-2020 03-Aug-2020 03-Aug-2020 2.5 180 180 1D WTD MTD YTD Absolute 2.0 2.0 2.0 -59.0 160 160 Rel.Sector -1.1 -1.1 -1.1 -53.0 2 Rel.Market -0.1 -0.1 -0.1 -48.6 140 140 120 120 1.5 VALUATION 100 100 Trailing RelativePrice 1 RelativePrice 80 80 PE -ve Absolute Price (local (local Absolute currency)Price 60 60 EV/EBITDA 1.5 0.5 PB 0.6 40 40 PCF -ve 0 20 20 Div Yield 4.1 Aug-2019 Nov-2019 Feb-2020 May-2020 Aug-2020 Aug-2019 Nov-2019 Feb-2020 May-2020 Aug-2020 Aug-2019 Nov-2019 Feb-2020 May-2020 Aug-2020 Price/Sales 0.1 Absolute Price 4-wk mov.avg. 13-wk mov.avg. Relative Price 4-wk mov.avg. 13-wk mov.avg. Relative Price 4-wk mov.avg. 13-wk mov.avg. Net Debt/Equity 0.9 100 90 100 Div Payout -ve 90 80 90 ROE -ve 80 70 80 70 Index) Share 70 Share Sector) Share - - 60 60 60 DESCRIPTION 50 50 50 40 The principal activity of the Company are 40 40 RSI RSI (Absolute) 30 consultancy, engineering, construction and 30 30 operations and maintenance. The Group also has a 20 20 20 share in a land development and marina joint venture 10 10 10 in Southern Spain. RSI (Relative to FTSE UKFTSE All to RSI (Relative RSI (Relative to FTSE UKFTSE All to RSI (Relative 0 0 0 Aug-2019 Nov-2019 Feb-2020 May-2020 Aug-2020 Aug-2019 Nov-2019 Feb-2020 May-2020 Aug-2020 Aug-2019 Nov-2019 Feb-2020 May-2020 Aug-2020 Past performance is no guarantee of future results. Please see the final page for important legal disclosures. 1 of 4 FTSE COMPANY REPORT: Costain Group 03 August 2020 Valuation Metrics Price to Earnings (PE) EV to EBITDA Price to Book (PB) 30-Jun-2020 30-Jun-2020 30-Jun-2020 20 9 6 +1SD 8 +1SD 5 15 7 Avg 6 4 +1SD 5 Avg 10 3 Avg -1SD 4 3 2 -1SD 5 2 -1SD 1 1 0 ‖ ‖ 0 0 Jul-2015 Jul-2016 Jul-2017 Jul-2018 Jul-2019 Jul-2015 Jul-2016 Jul-2017 Jul-2018 Jul-2019 Jul-2015 Jul-2016 Jul-2017 Jul-2018 Jul-2019 Keller 21.4 Marshalls 13.1 Marshalls 4.2 Marshalls 21.2 Polypipe Group 10.6 Forterra 2.6 Tyman 20.9 Volution Group 9.6 Polypipe Group 2.4 Volution Group 20.2 Balfour Beatty 8.5 Volution Group 2.1 Polypipe Group 17.5 CRH 7.4 Ibstock 1.6 Construction & Materials 14.6 Construction & Materials 7.0 Construction & Materials 1.4 Morgan Sindall Group 7.9 Morgan Sindall Group 4.2 Tyman 0.9 Galliford Try Holdings 1.5 Keller 3.8 SIG 0.8 Kier Group -0.8 Kier Group 2.8 Costain Group 0.6 SIG -1.8 Costain Group 1.5 Kier Group 0.3 Costain Group -34.7 Galliford Try Holdings 1.2 Galliford Try Holdings 0.2 -40 -30 -20 -10 0 10 20 30 0 2 4 6 8 10 12 14 0 0.5 1 1.5 2 2.5 3 3.5 4 4.5 Price to Cash Flow (PCF) Dividend Yield % Price to Sales (PS) 30-Jun-2020 30-Jun-2020 30-Jun-2020 30 11 0.4 10 0.35 25 +1SD 9 0.3 20 8 +1SD 0.25 Avg 7 15 +1SD 0.2 6 -1SD Avg 0.15 10 5 4 Avg 0.1 5 -1SD 3 0.05 0 ‖ ‖ 2 0 Jul-2015 Jul-2016 Jul-2017 Jul-2018 Jul-2019 Jul-2015 Jul-2016 Jul-2017 Jul-2018 Jul-2019 Jul-2015 Jul-2016 Jul-2017 Jul-2018 Jul-2019 Marshalls 14.0 Galliford Try Holdings 49.0 Marshalls 2.3 Polypipe Group 12.5 Keller 5.7 Polypipe Group 1.9 Volution Group 12.3 Kier Group 5.0 Ibstock 1.8 Morgan Sindall Group 10.8 Costain Group 4.1 Volution Group 1.6 Ibstock 9.7 SIG 3.3 Forterra 1.1 Construction & Materials 7.1 Construction & Materials 2.8 Construction & Materials 0.6 Keller 2.8 Forterra 2.0 Morgan Sindall Group 0.2 SIG 1.7 Ibstock 1.8 SIG 0.1 Kier Group -1.5 Morgan Sindall Group 1.7 Costain Group 0.1 Galliford Try Holdings -2.3 Polypipe Group 0.9 Galliford Try Holdings 0.0 Costain Group -3.1 Marshalls 0.8 Kier Group 0.0 -4 -2 0 2 4 6 8 10 12 14 16 0 10 20 30 40 50 60 0 0.5 1 1.5 2 2.5 Note: bar chart reflects the top and bottom five current values for the valuation ratio in question for FTSE All Shares stocks in the same sector as the stock concerned. All valuation metrics are trailing. 2 of 4 FTSE COMPANY REPORT: Costain Group 03 August 2020 Valuation Metrics Net Debt to Equity Dividend Payout (DP) Return on Equity (RoE) 30-Jun-2020 30-Jun-2020 30-Jun-2020 1 60 30 0.9 +1SD +1SD 50 25 0.8 Avg 0.7 Avg +1SD 40 20 0.6 -1SD -1SD 0.5 30 15 Avg 0.4 20 10 0.3 0.2 -1SD 10 5 0.1 0 0 ‖ ‖ 0 ‖ ‖ Jul-2015 Jul-2016 Jul-2017 Jul-2018 Jul-2019 Jul-2015 Jul-2016 Jul-2017 Jul-2018 Jul-2019 Jul-2015 Jul-2016 Jul-2017 Jul-2018 Jul-2019 SIG 1.9 Keller 100.0 Forterra 32.2 Norcros 1.0 Tyman 100.0 Marshalls 20.8 Keller 1.0 Ibstock 91.0 Morgan Sindall Group 19.2 Kier Group 1.0 Galliford Try Holdings 74.1 Ibstock 14.5 Costain Group 0.9 Norcros 64.2 Polypipe Group 14.3 Construction & Materials 0.6 Construction & Materials 46.4 Construction & Materials 9.6 Balfour Beatty 0.5 Morgan Sindall Group 0.0 Keller 5.1 Volution Group 0.5 Forterra 0.0 Tyman 4.2 Marshalls 0.4 Kier Group 0.0 Costain Group -1.7 Ibstock 0.3 SIG 0.0 SIG -32.9 Morgan Sindall Group 0.2 Costain Group 0.0 Kier Group -37.5 0 0.2 0.4 0.6 0.8 1 1.2 1.4 1.6 1.8 2 0 20 40 60 80 100 120 -50 -40 -30 -20 -10 0 10 20 30 40 ROE vs. PB — sector Du Pont Analysis 4.0 MSLH 6 30 3.5 5 Regression 25 3.0 4 20 FORT 2.5 PLP 3 15 PB FAN 2.0 2 IBST 1.5 10 CRH MGNS 1 ConstructionBBY & M KLR NXR 1.0 5 TYMN 0 SHI COST 0.5 KIE -1 ‖ 0 GFRD 2016 2017 2018 2019 2020 0.0 0 2 4 6 8 10 12 14 16 18 20 22 24 26 28 30 32 Net Margin Asset Turnover Gearing ROE (rhs) ‖ ROE Note: bar chart reflects the top and bottom five current values for the valuation ratio in question for FTSE All Shares stocks in the same sector as the stock concerned. All valuation metrics are trailing. 3 of 4 FTSE COMPANY REPORT: Costain Group 03 August 2020 Brief description Brief description Price to Earnings Price to Earnings (PE) is price over earnings per share. Earnings are based on the latest Gearing Gearing is Total Assets divided by Common Equity. Total Assets and Common Equity are (PE) available fiscal year earnings. each averaged over two years, that is, t and (t-1). Price to Sales (PS) Price to Sales (PS) is price divided by sales per share. It is based on sales from continuing Asset Turnover Asset turnover is Sales divided by Total Assets. Total Assets is averaged over two years, operations for the fiscal year. that is, t and (t-1). Price to Book (PB) Price to Book (PB) is price at the indicated date divided by common equity per share. Dupont Breakdown Return on Equity (RoE) = Net Margin * Gearing * Asset Turnover Common/ordinary equity is generally as reported at the most recent fiscal year-end but is Analysis adjusted to exclude minority interest, preferred stock and selected items as appropriate. RoE vs PB Plot of RoE versus PB at last month end for all FTSE UK All Share stocks in the sector Price to Cash Flow Price to Cash Flow (PCF) is price at the indicated date divided by cash flow per share. relative to the stock in question. Data may be limited to the stock in question if there are (PCF) currently no stocks in the corresponding FTSE UK All Share sector. Net Debt Equity Net Debt Equity is Net Debt as a percentage of common equity. Not calculated if Absolute Absolute graphs reflect performance for the stock in question for up to 366 days adjusted denominator (common equity) is negative for intervening corporate actions. EV to EBITDA EV to EBITDA is Enterprise Value divided by EBITDA (Earnings before Interest and Taxes, Relative Relative charts reflect the performance for the stock in question relative to the depreciation and amortisation). EV is full company Market Capitalisation at the data date corresponding sector of the FTSE All Share Index for up to 366 days, rebased to the start plus last annual net debt and Preferred Stock.