Balfour Beatty PLC — AGM Information 2016

Apr 25, 2016

Balfour Beatty plc 5 Churchill Place Canary Wharf London E14 5HU

+44 (0) 20 7216 6800 www.balfourbeatty.com

25 April 2016

Dear Shareholder

Change of Auditor

As previously announced on 3 December 2015, during 2015, your Board completed a competitive tender process for the appointment of an external auditor, as a result of which KPMG LLP was appointed as the Company's auditor for the year ending 31 December 2016. Deloitte LLP will consequently not be seeking re-appointment as auditor and, as required by section 519(3) of the Companies Act 2006, has deposited with the Company a statement of the circumstances connected with its loss of office, as follows:

"As announced on 3 December 2015, the company put the audit out to competitive tender and we were not successful in retaining it."

This statement is being sent to shareholders for information only as required by section 520(2) of the Companies Act 2006.

KPMG LLP will be proposed for appointment as the Company's auditor at the Company's next Annual General Meeting (AGM) to be held on 19 May 2016.

AGM and Class Meeting of the holders of the Company's cumulative convertible redeemable preference shares (Class Meeting)

I would like to remind you that the AGM will take place at 11.00 am at the London Marriott West India Quay Hotel, 22 Hertsmere Road, London E14 4ED on Thursday 19 May 2016. Immediately following the AGM, we will hold the Class Meeting. The circular dated 11 April 2016 setting out the formal notices of the AGM and the Class Meeting is now also available on the Company's website at: http://www.balfourbeatty.com/investors/shareholder-centre/agm/2016/, and I look forward to seeing as many of you as are able to attend.

If you cannot attend the meetings, I would encourage you to nominate someone else to attend and vote for you or you can nominate me to vote for you. You can do this either by using the Forms of Proxy sent to you previously or by submitting your proxy voting instructions over the internet in the manner described in the circular dated 11 April 2016 setting out the formal notices of the AGM and the Class Meeting.

If you do not have a Form of Proxy and believe that you should have one, please contact the Company's Registrars, Capita Asset Services, direct on 0871 664 0300. Calls cost 12p per minute plus your phone company's access charge. If you are outside the UK, please call +44 371 664 0300. Calls outside the UK will be charged at the applicable international rate. Lines are open between 9.00 am and 5.30 pm, Monday to Friday excluding public holidays in England and Wales.

Electronic shareholder communications

If you now wish to receive all of the Company's shareholder communications electronically, I would like to remind you to register to do so by visiting the Balfour Beatty Share Portal at www.balfourbeatty-shares.com and following the instructions there. The registration process includes providing your email address, which will not be used for any other purpose. Electronic communication provides you with easy and convenient access to shareholder documents. It also saves paper and postage which helps us reduce our environmental impact and costs.

Yours sincerely

Philip Aiken Chairman