Pre-close Update

8 December 2017

JOHN LAING GROUP plc

PRE-CLOSE UPDATE - INCREASED ACTIVITY IN 2017

John Laing Group plc ("John Laing" or "the Group"), the international originator, active investor and manager of infrastructure projects, today issues a pre-close update for the year ending 31 December 2017.

Investment activity

· Total investment commitments to date of £340 million, well ahead of our original guidance for 2017 of approximately £200 million

· This demonstrates the strength of our pipeline of investment opportunities across our three regions: Asia Pacific, Europe and North America

· Investment commitments in 2017 so far (see Appendix I for full list):

o New Grafton Correctional Centre (Australia): £79.3 million

o Buckthorn wind farm (North America): £47.6 million

o Rocksprings wind farm (North America): £62.9 million

o I-66 managed lanes (Transform 66 P3) project (North America): £118.0 million

o Two other renewable energy investment commitments in France and Australia totalling £32.0 million

· Melbourne Metro project anticipated to reach financial close before 31 December 2017

· John Laing consortium appointed preferred bidder on MBTA fare collection project in Massachusetts due to reach financial close in Q1 2018

Realisations

· Total realisations announced in 2017 to date of £256 million, well ahead of our original guidance for 2017 of approximately £200 million

· Other realisation processes underway, some of which have the potential to reach completion before year end

· Realisations in 2017 to date (see Appendix I for full list):

o Sale of 30% holding in M6 road, Hungary (£22.7 million)

o Sale of 29.69% holding in A1 motorway, Poland (£120.4 million)

o Sale of 50% holding in Croydon & Lewisham street lighting project (£8.2 million)

o Sale of five UK PPP investments to John Laing Infrastructure Fund, including further 9% interest in Intercity Express Programme (IEP) (Phase 1), for total of £104.6 million, of which £1.9 million is deferred

· Aggregate prices achieved in line with portfolio valuation

Investment portfolio

· Our investment portfolio as a whole is performing in line with expectations.

IEP (Phase 1)

· The first ten trains have now been accepted into passenger operations, achieving a key milestone for the project (Minimum Fleet Acceptance) with all trains scheduled to be in operation in late 2018.

Other investments

· 15 projects have reached or are due to reach construction completion during 2017 and as a consequence move from our primary to our secondary investment portfolio.

Pension fund

· As at 30 November 2017, using unaudited asset values the IAS19 pension deficit for the John Laing Pension Fund was estimated at £22 million based on an IAS 19 discount rate of 2.7% and long term RPI of 3.2%.

Other

· In October 2017, the Group increased its committed corporate banking facilities from £400 million to £475 million.

Outlook

· Net asset value at 31 December 2017 projected to be in the range of management expectations, assuming constant exchange rates and no change in the IAS19 pension deficit as at 30 November 2017

· We expect the special dividend for 2017 to be based on realisations to date of £256 million, and on any other realisations which complete before 31 December 2017. In arriving at the appropriate percentage within the 5% - 10% pay-out range, the Board plans to consider all relevant factors, including funding needs for new investments

· The pipeline of new investment opportunities remains strong in both PPP and renewable energy, especially in Australia, the US and Canada.

· John Laing is currently part of nine shortlisted PPP bids due to reach financial close in 2018 or 2019, of which five are in North America and four in Europe

· The market for secondary infrastructure investments remains active

Olivier Brousse, John Laing's Chief Executive Officer, said:

"In 2017 we have continued to scale up our business: both our investment commitments and our realisations are well ahead of the guidance we gave earlier in the year, while we are managing our cost base and our risk profile. We are confident that the quality of our local teams, together with the strength of our partnerships with global infrastructure players, will continue to feed our pipeline of opportunities in 2018. "

The Group's results for the year ending 31 December 2017 will be announced on 6 March 2018.

A call for analysts and investors will be held at 8.00am (London time) today.

Conference call details:

Further information

Analyst/investor enquiries:

Media enquiries:

www.laing.com

Appendix I: details of investment commitments and realisations

JLIF = John Laing Infrastructure Fund

Appendix II: exchange rates at 31 December 2016, 30 June 2017 and 30 November 2017