Slides
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3 June 2025 Capital Markets Day Marylebone Square
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Capital Markets Day, June 2025 2 Disclaimer No representation or warranty, express or implied, is made or given by or on behalf of Kier Group plc (the “Company” and, together with its subsidiaries and subsidiary undertakings, the “Group”) or any of its directors or any other person as to the accuracy, completeness or fairness of the information contained in this presentation and no responsibility or liability is accepted for any such information. This presentation does not constitute an offer of securities by the Company and no investment decision or transaction in the securities of the Company should be made on the basis of the information contained in this presentation. This presentation contains certain information which the Company’s management believes is required to understand the performance of the Group. However, not all of the information in this presentation has been audited. Further, this presentation includes or implies statements or information that are, or may be deemed to be, "forward-looking statements". These forward-looking statements may use forward-looking terminology, including the terms "believes", "estimates", "anticipates", "expects", "intends", "may", "will" or "should". By their nature, forward- looking statements involve risks and uncertainties and recipients are cautioned that any such forward-looking statements are not guarantees of future performance. The Company's or the Group’s actual results and performance may differ materially from the impression created by the forward-looking statements or any other information in this presentation. The Company undertakes no obligation to update or revise any information contained in this presentation, except as may be required by applicable law and regulation. Nothing in this presentation is intended to be, or intended to be construed as, a profit forecast or a guide as to the performance, financial or otherwise, of the Company or the Group whether in the current or any future financial year. This presentation and its contents should not be distributed, published or reproduced (in whole or in part) or disclosed by recipients to any other person. Certain information in this presentation has been extracted from the announcement of HY25 interim results made by the Company on 11 March 2025 and this presentation is not a substitute for reading that announcement in full.
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Welcome Andrew Davies Chief Executive HMP Millsike
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Capital Markets Day, June 2025 4 Our team Experienced leadership team focused on execution Leigh Thomas Group Managing Director Property Andrew Davies Chief Executive Officer Simon Kesterton Chief Financial Officer Louisa Finlay Chief People Officer Stephen Milne General Counsel Sophie Timms Corporate Affairs Director Joe Incutti Group Managing Director Transportation Stuart Togwell Group Managing Director Construction Andrew Bradshaw Group Managing Director Natural Resources, Nuclear & Networks Rory Elliott Corporate Development Director * * * * * * * * Presenting today
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Capital Markets Day, June 2025 5 Agenda 14.00 Welcome 14.05 – 14.20 Our investment case Andrew Davies, Chief Executive Officer 14.20 – 14.30 Our sustainable growth plan Simon Kesterton, Chief Financial Officer 14.30 – 16.20 Stand presentations (detail on right) 16.20 – 16.30 Final remarks and Q&A 16.30 – 18.00 Drinks 1. Construction Stuart Togwell Group Managing Director 2. Transportation Joe Incutti Group Managing Director 3. Natural Resources, Nuclear & Networks Andrew Bradshaw Group Managing Director 4. Property Leigh Thomas Group Managing Director 5. Sustainable Growth+ Louisa Finlay Chief People Officer Stand presentations
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Capital Markets Day, June 2025 6 Today’s objectives ▪ Outline our investment case: why we feel Kier represents a unique and compelling investment proposition ▪ Meet our executive management team: understand how our services, complementary capabilities and operational strength, through our integrated 360 approach, drive our sustainable growth plan, at superior margins
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Capital Markets Day, June 2025 7 Current trading Order Book ▪ The order book as at 30 April 2025 was c.£11bn, a c.2% increase on the year-end position (30 June 2024: £10.8bn). ▪ The Group has secured revenue of c.80% for FY26, providing a high degree of visibility. Long-term framework positions are excluded from the order book and represent an additional opportunity. ▪ Bidding discipline and risk management embedded across the business has driven a higher quality order book, which combined with the recapitalisation of our property business has led us to increase our operating profit margin target to 4.0%-4.5%. Recent awards include: The Group continued to trade well and in line with the Board’s expectations in the period to 30 April 2025. Construction Transportation NRNN Property ▪ PCSA from University of Warwick to design and build STEM facilities ▪ Two education projects worth c. £180m A one-year extension by Shropshire County Council for the maintenance of local highways ▪ 5-year renewal of the Anglian Water IOS Alliance worth up to £400m ▪ £21m upgrade to Worcester sewage treatment works Planning permission for £200m Bishop’s Stortford station redevelopment (Network Rail JV)
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Capital Markets Day, June 2025 8 Who we are c.10,000 employees 400+ live projects across the UK Strategic supplier to UK government £158bn value of long-term frameworks on which we have a position 123 framework positions 80% employee engagement Key financials ▪ FY24 revenue: £4.0bn ▪ FY24 adj. operating profit FY24: £150m ▪ Order book £11bn (December 2024) ▪ Average order size: c.£20m ▪ Net cash: £58m (December 2024) ▪ Average month-end net debt: £(38)m (December 2024) The largest supplier to the UK government of infrastructure services, together with key construction and property development projects
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Capital Markets Day, June 2025 9 Our business model Strong cashflow generation allows disciplined investment of cash Designs, builds and maintains for: ▪ National Highways ▪ Local Authorities ▪ HS2 ▪ Rail ▪ Aviation ▪ Ports Invests and develops sites: ▪ Partnership housing ▪ Property Delivers public and private sector projects for: ▪ Education ▪ Healthcare ▪ Justice & Borders ▪ Defence ▪ Commercial ▪ Housing Maintenance ▪ Facilities Management Enhancing returns Repairs, maintains and delivers capital works for: ▪ Water ▪ Nuclear ▪ Energy Construction Natural Resources, Nuclear & Networks Transportation Property Urban Regeneration Free cashflow generation
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Our investment case Andrew Davies Chief Executive 19 Cornwall Street
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Capital Markets Day, June 2025 11 Our investment case Value accretive earnings-led business model Attractive market positions Strong order book Experienced management team Delivering sustainably stronger returns Focused on UK Infrastructure Services and Construction, aligned to Government's priorities Underpinned by long-term contracts and framework agreements Proven track record of operational and financial delivery
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Capital Markets Day, June 2025 12 Our strategy Leveraging our attractive market positions to sustainably deliver infrastructure vital to the UK 53% 28% Regulated Water, Energy Private Commercial, Industrial 11% 8% Central Government Justice, Defence, Transport, Education, Health, Home Office, Environment We operate on 45 national and 78 regional frameworks Revenue by customer (over 90% Public/Regulated) Wide Public Sector Local Authorities, Devolved Authorities, Education, Health, Police, Fire, PFI
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Capital Markets Day, June 2025 13 Unique regional footprint National capability and local execution through wide regional presence Map is for illustrative purposes only ▪ Regional presence across the UK with network of offices ▪ 400 + national and local projects ▪ Customer relationships with central government and regional and local authorities ▪ Business supported by over 16,000 supplier chain partners
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Capital Markets Day, June 2025 14 Our impact Committed to delivering infrastructure vital to the UK, adding value to the communities we operate in Maintain over 21,000km of local authority and strategic roads Laid 102km of electricity cable since Jan 2023 Four major reservoir upgrades for Canal & River Trust, totalling more than 3.5m m3 of water Delivering housing maintenance to more than 98,000 properties 16 healthcare and 16 education projects completed in FY24 Delivering over 80km of HS2 Phase One £3bn GDV pipeline of opportunities available to Property joint ventures 69% of revenue derived from green products and services Offered 41 prison leavers employment in FY24 £1.4bn spent with SMEs/VCSEs in FY24
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15 Our integrated 360 approach Growth driven by synergies, through key interconnected capabilities across our businesses Construction Customer reach Purchasing power Shared services Financial Sustainability model Multiple touch points, with customers served by more than one business Sustainability culture embedded throughout the Group Reinvestment of working capital inflows to enhance returns Synergies Capabilities Scale efficiencies and expert capabilities, through shared services Capital Markets Day, June 2025 Scale advantage delivering benefits through Group-wide purchasing
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Capital Markets Day, June 2025 16 Macro environment Economic and political factors provide supportive environment for growth Longevity and net migration adding pressure on health, social care and housing Construction historically used to stimulate economy and counter weak economic growth Impact on roads, rail and airports through population growth and increased travel Efforts to increase spending and regeneration to narrow the UK’s regional inequality Energy security and net zero commitments driving domestic investment Population growth Economic growth Congested transport Geographic imbalance Climate change Age of asset base and environmental regulations driving maintenance and upgrade programmes Economic and political factors driving long-term growth Short term Long term A move away from globalisation, as well as a need for increased productivity and growth, driving political and economic decision-making. Ageing infrastructure Economic, Regulatory and Political Landscape
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Our abilities Kickstart economic growth We operate on 123 frameworks regionally and nationally across economic and social infrastructure 10-year Infrastructure Strategy Experience on strategic frameworks across economic and social infrastructure Take back our streets Key strategic partner delivering prison expansion and refurbishment Break down barriers to opportunity Connecting communities, improving schools and creating jobs and apprenticeships Build an NHS fit for the future Experienced delivery of major hospital projects and community healthcare facilities Procurement planning and devolution Value-add approach to procurement Making Britain a clean energy superpower Delivering warm homes and supporting decarbonisation New nuclear build expertise and supporting new technologies Housing and regeneration Public sector partnerships to deliver affordable housing and regenerate public spaces Defence readiness to deter the growing UK threats Expertise and framework positioning to support defence estate optimisation and defence nuclear infrastructure Capital Markets Day, June 2025 17 Government agenda vs our abilities Well-placed to support government priorities Government priorities Contains public sector information licensed under the Open Government License v3.0.
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Capital Markets Day, June 2025 18 UK Government and regulated industry priorities 1 Anticipated private sector investment driven by the Government’s Ten Point Plan for Green Industrial Revolution, Net Zero and Energy Strategy Infrastructure Services Transportation and Natural Resources, Nuclear & Networks - 52% of Revenue (H1 25) Roads and Rail Water and Environment Energy £4.8bn in 2025 ahead of Road Investment Strategy 3 (RIS3) £8.3bn fund for potholes and other highways maintenance £43bn committed over 5 years for CP7 rail network Government support for HS2 Water England/Wales - AMP8 £104bn to 2030 NI Water £4bn to 2027 Strategic water storage and transfer £24bn Flood defences: £1.3bn for 34 flood defence projects UK leading net-zero pledge and plan to make the UK a green energy superpower £100bn investment in UK energy security by 2030(1) Greener buildings, public transport and carbon capture Great British Energy: £8.3bn 10-year economic, social infrastructure and housing strategy (June) will supplement existing spend
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Capital Markets Day, June 2025 19 UK Government spending commitments Construction & Property 48% of Revenue (H1 25) Focused on schools, hospitals, housing, prisons and defence DefenceJustice & Borders Education Healthcare Housing Maintenance DfE – launched CF25 Framework worth up to £15.4bn - 6 years from January 2026 DfE - 431 schools to 2030 (c.90 pa) Local authority schools to support New Towns/ housing growth New Hospital Programme estimated at £3bn/year ~£600m each NHS Trusts (BAU) £1bn visible pipeline Total prison population: 85,900 and at 99% capacity (adult male prisons). Male Cat B and C prisons needed. Capital maintenance a priority with opportunities up to c.£2.8bn over next 5 years Government commitment to spend 3.0% of GDP (up from 2.3%) on defence £5.1bn Defence Estate Optimisation Programme Single Living Accommodation alliance to build 16,000 new bedspaces for armed forces Retrofitting and maintenance of public housing particularly in high density urban areas Geographic redistribution and regeneration - including 100 new towns submitted for consideration 20,000 homes, along with new schools and health facilities and an ambition to unblock 700,000 homes across 350 sites Urban Regeneration
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23% 5% 12% 2% 13% 18% 7% 13% 8% Roads Repairs & Maintenance Roads New Infrastructure Other - Repairs & Maintenance2 Infrastructure Other New2 Commercial Industrial Public Non-Housing Repairs & Maintenance Private Repairs & Maintenance Public Infrastructure Services £29bn Construction £35bn Capital Markets Day, June 2025 20 Our addressable market Significant addressable market opportunity across our core sectors Annual addressable market £64bn1 1Excludes Property which has access to a further £2bn of GDV through JV partnerships 2IIncludes c.£2.6Bn of Water addressable market ▪ Total Group framework awards: £158bn covering on average 3-4 years ▪ Over 60 % of our FY24 revenue derived from projects delivered under framework agreements ▪ 60% of revenue under cost reimbursable contracts (balance/40% mitigated by two stage process) ▪ Average contract size £20m Source: CPA construction industry forecasts Spring 2025; addressable market size based on management estimate
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Simon Kesterton Chief Financial Officer Our sustainable growth plan Moors at Arne
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Capital Markets Day, June 2025 22 Long-term sustainable growth plan Long-term targets to drive shareholder value and superior margins Transportation Natural Resources, Nuclear & Networks Construction Property ▪ Revenue: GDP + through the cycle ▪ Adjusted operating margin target: 4.0-4.5% ▪ Cashflow conversion of operating profit c.90% ▪ Balance sheet: average net cash position with investment of surplus cash ▪ Sustainable dividend policy: c.3x cover through the cycle
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Capital Markets Day, June 2025 23 Growth underpinned by order book and frameworks Order book of £11bn provides clear multi-year revenue visibility ▪ Over 80% of FY26 and 50% of FY27 revenue secured, via committed orders ▪ Longer term, revenue growth underpinned by £158bn* of framework positions Y 0 Y 1 Y 2 Y 3 Y 4 Y 5 Infrastructure Services Order Book Frameworks Y 0 Y 1 Y 2 Y 3 Y 4 Y 5 Construction Order Book Frameworks Revenue Secured: 2 years + Secured : 2 years Underpinned: 5 yearsUnderpinned: 5 years Revenue *total advertised values
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Capital Markets Day, June 2025 24 Framework positions Maintaining and growing central and local framework positions ▪ Awarded places on long-term frameworks and contracts worth up to £158bn* ▪ Supports long-term revenue growth streams, underpinning strong order book ▪ Provides barriers to entry and strengthens customer relationships ConstructionInfrastructure Services ▪ 12 national framework positions ▪ 41 regional framework positions ▪ Typical durations 4+ years ▪ Total advertised value circa: £31bn ▪ 33 national framework positions ▪ 37 regional framework positions ▪ Typical framework duration 4 years; average of 2 years remaining ▪ Total advertised value circa: £127bn *total advertised values
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Capital Markets Day, June 2025 25 Financing and liquidity Unique access to capital debt markets, provides further support for growth strategy 0 50 100 150 200 250 300 2026 2027 2028 2029 Senior Notes RCF Maturities by calendar year (£m) ▪ £400m of facilities in place: ▪ £250m Senior Loan Notes due February 2029 ▪ £150m RCF to March 2027
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£286m £232m £116m £38m FY22 FY23 FY24 HY25 £3.3bn £3.4bn £4.0bn FY22 FY23 FY24 Av. month-end net debt Capital Markets Day, June 2025 26 Track record of delivery Significant progression in operational delivery reflected in results Revenue £121m £132m £150m FY22 FY23 FY24 Adjusted operating profit £55m £132m £186m FY22 FY23 FY24 Free cashflow 16.8p 19.2p 20.6p FY22 FY23 FY24 Earnings per share £9.8bn £10.1bn £10.8bn FY22 FY23 FY24 Order book
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Capital Markets Day, June 2025 27 Capital allocation Recurring cashflow and efficient use of balance sheet provide opportunities to create value through focused capital allocation Note 1: Share buybacks are in addition to net payments relating to employee share schemes Investment in Property ▪ Disciplined investment in Property business with up to £225m capital employed ▪ Targeting ROCE of c.15% Acquisitions ▪ Group will consider value accretive acquisitions in core markets ▪ Disciplined approach to valuation Incremental shareholder returns ▪ Initial £20m share buy-back commenced January 20251 Ordinary dividend ▪ Progressive policy increasing through earnings growth ▪ Targeting dividend cover of c.3x through the cycle Capital allocation While maintaining a strong balance sheet, targeting a sustainable average month-end net cash position 2 3 4 5 Capex ▪ Ongoing investment to support the business1
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Shakespeare North Playhouse Summary Andrew Davies Chief Executive
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29 Summary Industry-leading profitability: 4.0%-4.5% margin (AOP) Multi-year revenue visibility, through strong order book: £11bn and £158bn of framework positions Superior returns through investment in Property business Experienced management team, with track record of delivery Capital Markets Day, June 2025 1 2 3 4
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Final remarks Keighley Marley Andrew Davies Chief Executive
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31 Summary Industry-leading profitability: 4.0%-4.5% margin (AOP) Multi-year revenue visibility, through strong order book: £11bn and £158bn of framework positions Superior returns through investment in Property business Experienced management team, with track record of delivery Capital Markets Day, June 2025 1 2 3 4
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Q&A
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Stuart Togwell Group Managing Director Construction Mulberry Dock Academy
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34 A history of continued excellence 1928 Kier founded in Stoke on Trent by Olaf Hector Kier (born Kiaer) 1963 Iron Bridge Cooling Towers 3ft high rings of concrete poured each day 2015 DTTCP Lyneham 90% pre-fitted modular single living accommodation 2023 Croydon University Hospital Transforming patient care for the Trust 2025 HMP Millsike The UK’s first all electric prison, designed to reduce re-offending 2012 The Sainsbury Laboratory Cambridge RIBA award winning research laboratory 2024 Marylebone Square Housing Project of the Year – Building Awards 2020 Nightingale Hospital Bristol Rapid Kier response in supporting the NHS during COVID-19 Capital Markets Day, June 2025 1944 Mulberry Harbour Prefabricated harbours taken to D-Day Itchen Bridge, Southampton Innovative method of launching precast concrete beams 1977 Gatwick Airport North Terminal Enabled Gatwick to become the world’s second largest airport 1983 Wellcome wing Technical innovation to extend the London Science Museum 2000
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30% 15% 23% 5% 13% 14% 30% 15%23% 5% 13% 14% Revenues (HY25) Education Healthcare Justice & Borders Defence Other Public Commercial Capital Markets Day, June 2025 35 Introduction We maintain: ▪ Facilities Management services provided to more than 5,500 buildings ▪ Delivering Housing Maintenance to more than 98,000 homes ▪ One of the largest regional based builders Delivering over 200 projects ▪ Breadth of capability From smaller works to £680m+ projects delivered by our Strategic Projects team ▪ Technical expertise Dedicated mechanical & electrical services using the latest MMC ▪ Net promoter score Industry-leading score of +59 (industry standard is +50) We build: ▪ Department for Education ▪ Ministry of Justice ▪ Department of Health & Social Care ▪ Crown Commercial Service ▪ Heathrow Airport Limited ▪ Derwent, Stanhope and M&G ▪ Ministry of Defence Across 8 sectors: ▪ Education ▪ Justice & Borders ▪ Healthcare ▪ Defence ▪ Science & Technology ▪ Commercial ▪ Central & Local Government >70% contracts won with client worked with in the last 5 years We work for:
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Capital Markets Day, June 2025 36 A proven track record Education 266 Education projects completed in the last six years Healthcare 151 Healthcare projects completed in the last six years 17 T60 houseblocks delivered for the MoJ Defence £5.1bn Defence Estate Optimisation Portfolio Justice & Borders Appointed to Private Sector 689,613 sq ft of London commercial space delivered since July 23 Facilities Management Housing Maintenance Strategic Projects £683.8m HMP Glasgow Delivering the 5,500 98,000 Facilities Management services provided to more than buildings Delivering Housing Maintenance to more than buildings
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Capital Markets Day, June 2025 37 Long term relationships built on trust Working together for 14 Years Working together for 16 Years Working together for 23 Years Working together for 14 Years Working together for 20 Years Working together for 16 Years Working together for 6 Years Working together for 5 Years
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Capital Markets Day June 2025 38 Strong order book and pipeline of £4.5bn Access to frameworks worth a total advertised value of c. £127bn, on a two-stage basis Underpinned by 33 national and 37 regional framework positions TIDE Bankside Order book and pipeline
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Capital Markets Day June 2025 39 Discipline at scale ▪ Stand-out delivery model with a network of regional delivery hubs – we can flex to suit client demand ▪ On-the-ground expertise combined with robust national functional support, guidance and governance ▪ A leadership team with exceptional industry experience ▪ De-risking through two-stage procurement processes, ensuring a predictable pipeline of work
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Kier Group, Capital Markets Day, 3 June 2025 40 How do we maintain our position as a leading contractor?
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Capital Markets Day, June 2025 41 1. Innovation through digital Digital ▪ Our award-winning digital experts help clients optimise the design, delivery and promotion of their assets ▪ Cover the whole spectrum: individual buildings to a whole-estate approach ▪ Investment in cutting-edge digital twin solutions providing real-time insights that help clients: ▪ optimise performance ▪ drive efficiency ▪ maximise value from day one through to maintenance and operation
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Capital Markets Day, June 2025 42 2. Leaving lasting legacies Social Value ▪ Factored into everything we do ▪ In FY24 we delivered social value worth £1.48bn ▪ 2,876 hours spent on community volunteering ▪ 12,043 apprentice weeks delivered, and 441 apprenticeship opportunities created ▪ A platinum member of the Government’s 5% Club ▪ 29 offers of employment for prison leavers and 44 prisoners released on temporary licence at HMP Millsike ▪ Rolling out industry-training to support response to the Building Safety Regime
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Capital Markets Day, June 2025 43 3. Forefront of energy resilience Decarbonisation ▪ Working with clients across the project lifecycle to provide effective carbon solutions ▪ Holistic ‘design and build’ retrofit services ▪ 71.5% carbon reduction by 2030 ▪ 100% renewable energy use by 2030 ▪ Net zero scope 3 by 2045
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Capital Markets Day, June 2025 44 4. Surpassing our clients’ needs Industrialisation ▪ Modern Methods of Construction (MMC) solutions, delivering optimal client results ▪ Standardisation of design and components = better repeatability, quality and performance ▪ Project integrator – Choice Factory
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Capital Markets Day, June 2025 45 5. The sum of our parts – breadth of services across Group
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Capital Markets Day, June 2025 46 Kier Construction - summary Market-leading position in construction. We build as a trusted partner to government and blue-chip clients and maintain public sector properties and housing 1 2 Strong order book and pipeline of £4.5bn and access to £127bn frameworks, procured predominantly on a two-stage basis 3 Regional build model enables discipline at scale, covering a varied portfolio of work across the country 4 Continuous innovation and solutions-driven 5 Our integrated 360 approach
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Q&A Shakespeare North Playhouse
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Joe Incutti Group Managing Director Transportation A417
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Capital Markets Day, June 2025 49 Leading provider of sustainable transport infrastructure solutions Introduction Our work: • Providing critical transport infrastructure across the country, enabling millions of journeys each day • One-stop service provider, offering design, construction, and maintenance across highways, rail, aviation, and ports sectors ▪ Delivering HS2 central section (80km+ civil engineering works), with Eiffage, Ferrovial and BAM ▪ Maintaining 21,000 km of roads for National Highways, TFL and Local Authorities ▪ Enhancing infrastructure across Network Rail’s Northwest and Central region, from London Euston to Cumbria ▪ Working with local authorities and transport bodies to maintain and improve networks Key: Shading showcases local authority, Transport for London and National Highway maintenance contracts only 60% 40% Transportation revenues (HY25) Rail Highways
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Capital Markets Day, June 2025 50 ▪ Large, consistent demand underpinned by multi-year funding commitments and frameworks with durations of 6 years+ ▪ Market leading position in Highways underpinned by long-term relationships ▪ Significant growth opportunities in Rail and Aviation Market summary (Information based on April 2025 available data) *Note 1: Estimates and minimum values were used where exact figures were unavailable. Ranges were averaged, and conservative rounding was applied. **Note 2: Some entries (e.g. Integrated Rail Plan, HS2, Network Rail Control Periods, RIS2/3, and Local Transport Settlements ) represent or include strategic investment frameworks. ** Government Committed Investment Investment Period 2024 2025 2026 2027 2028 2029 2030 Integrated Rail Plan £54bn 2022-2050 Integrated Rail Plan (including TransPennine Route Upgrade) High Speed Rail 2 £45-54bn 2018-2030 Phase 1 (London-West Midlands) Network Rail c.£43bn 2024-2029 Control Period 7 (CP7) Control Period 8 (CP8) National Highways £24bn 2020-2025 RIS 2 Road Investment Strategy (RIS) 3 Local and regional transport c.£20bn 2022-2032 City Regional Sustainable Transport Settlements + Local Authority Capital Funding c.£8bn 2023-2026 Transport for London 2024 Business Plan Aviation c.£7bn+ 2022-2030 Airport expansions Ports c. £1.8bn 2024-2030 Ports expansion and upgrades TOTAL £212bn*
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Capital Markets Day, June 2025 51 Providing growth opportunities through our unique 750 strong internal design team and digital solutions capability Managing risk responsibly through the design process Fully-integrated design, build and maintain Industry-leading, design-lite proposition Design solutions that are safe, buildable and easy to maintain Kier Design: our integrated 360 approach
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Capital Markets Day June 2025 52 Our current key clients and sectors (in collaboration with Kier Places and Construction) Highways Rail Aviation
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Capital Markets Day, June 2025 54 Transportation - summary Providing the transport infrastructure essential to a thriving economy and our communities A market leading position (top 3 in highways across Maintenance & Operations, and Projects)1 2 3 4 Leading industry integrator with in-house design, construction, maintenance and digital capabilities Established relationships with strategic clients on long-term frameworks of typically 6+ years Leveraging expertise to address long term needs around ageing asset condition and drive for sustainability
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A417 Q&A
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Andrew Bradshaw Group Managing Director South West Water Natural Resources, Nuclear & Networks
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Nuclear and Energy business Environment business Capital Markets Day, June 2025 57 Our purpose is to sustainably deliver essential services and major infrastructure to the UK We are strategically positioned to respond to the future investment in water infrastructure, nuclear & energy, and environmental resilience ▪ Water: Market leading position working to clean up our rivers and maintain access to supplies ▪ Environment: Improving resilience to climate change through our approach to flood defence and water management projects ▪ Nuclear & Energy: A unique proposition helping to deliver net zero energy self- sufficiency, maintain national security, and be at the forefront of innovations in fusion ▪ Our integrated 360 approach delivers added value across the division and the Group (Transporation, Construction and Property) Natural Resources, Nuclear & Networks Introduction Revenues (HY25) Water Environment Nuclear & Energy Other 43% 24% 26% 7% Shading highlights the regions covered by the water clients we work for.
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Capital Markets Day, June 2025 58 Market opportunities Water Environment Record investment of £104bn (access to £15bn of frameworks) approved by regulator Ofwat for AMP8 between 2025 and 2030 Sustained investment will be required into future AMP cycles £24bn of further accelerated national strategic schemes The Environment Agency has stated that £1bn needs to be spent every year for the next 50 years on flood and coastal defences Established relationships with these key customers for 10+ years Water management a key challenge due to population growth and climate change Nuclear power generation to increase UK contribution four- fold Defence spending to increase to 3.0% of GDP UK’s carbon reduction objectives leading to increased renewables and grid upgrades Nuclear & Energy
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Capital Markets Day, June 2025 59 Our key clients Growth with new Growth with existing Growth with new Growth with existing
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Capital Markets Day, June 2025 60 Case study: Toddbrook Reservoir ▪ In July 2019, following intense rainfall several concrete panels on the Toddbrook Reservoir dam spillway collapsed ▪ Around 1,500 residents evacuated from the town of Whaley Bridge to protect them from the risk of dam failure and potential catastrophic flooding ▪ Worked alongside the RAF, police, fire & rescue service, Environment Agency and the Canal & River Trust, to carry out rapid emergency repair works ▪ A billion litres of water pumped from the reservoir to ensure safety Then *Footage used with permission from Derbyshire Constabulary
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Capital Markets Day, June 2025 61 Case study: Toddbrook Reservoir Now ▪ Kier working with Canal & River Trust to deliver major restoration works ▪ These include a new tumble bay, side weir and basin, to direct overflowing water into the River Goyt ▪ £16m in social value generated through activities including investment in local supply chains, jobs created, volunteering and donations ▪ Around 30,000 fish rescued and relocated prior to works
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Capital Markets Day, June 2025 62 Case study: Toddbrook Reservoir The future ▪ Following completion of the safety- critical construction works, several other legacy improvements will be made: ▪ Concrete spillway grassed and a children’s play park built at the foot of the dam ▪ Toddbrook Sailing Club will be provided with a new clubhouse and boat storage facility ▪ Bridge across the reservoir re- opened, facilitating a safe walking route from one side to the other
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Capital Markets Day, June 2025 63 Natural Resources, Nuclear & Networks - summary A market leading position in Water with access to c.£15bn of Frameworks 1 2 3 4 Unique approach to all things Water, with extensive reach into transferable skills and knowledge Resources and expertise to deliver major infrastructure in Nuclear licensed environments Well positioned for sustainable growth in highly funded sectors, placing sustainability at the forefront of everything we do
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Q&A South West Water
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Leigh Thomas Group Managing Director Property: Urban Regeneration Guildford Station
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Capital Markets Day, June 2025 66 Introduction £3bn GDV1 mixed-use pipeline opportunity 34 Projects Across the UK Investing in brownfield sites to revitalise communities through public and private partnerships 15 Commercial Development 19 Residential Development =+ £225m2 of Kier Capital to deliver a pipeline of opportunity of up to £3bn GDV* over 5-10 years 1 Gross Development Value : Maximum value, based on 100% project build out 2 £194m at December 2024
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Capital Markets Day, June 2025 67 Property Market Drivers and Opportunities Demographic changes UK population to grow 5m+ by 2032, rapid urbanisation and a surge in one- person and 65+ households—boosting demand for build to rent , co-living, and senior living. English Devolution Bill and Local Gov Reform Planning and Infrastructure Bill Local Government Pension Reforms National Wealth Fund Bill Building Safety Act Minimum Energy Efficiency Standards Underpinned by Critical Legislation Nature Restoration Fund Industrial Strategy Demographic changes UK population to grow 5m+ by 2032, rapid urbanisation and a surge in one-person and 65+ households—boosting demand for build to rent , co-living, and senior living. Economic Growth Industrial and Infrastructure Strategies are central to UK growth —focused on rebuilding Britain, supporting jobs, unlocking investment and improving housing and health standards. Improved productivity & raising living standards throughout the UK. Changing Consumer Demand Online retail now 27% of all sales + demand for experiential retail and leisure and selective physical store presence driving multi-channel strategies. Retail demand, On-Shoring, AI & Robotics, & population growth driving warehouse demand. Climate Change Occupier Net Zero demand 68% office leasing (2023) in London & 5 regional cities on new or refurbished offices, driven by net zero, wellbeing, and talent attraction. Obsolescence = Opportunity: 83% of commercial buildings need major EPC upgrades creating investment potential. Good design is key to climate resilience.
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Capital Markets Day, June 2025 68 Group and Partnership Synergies
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Capital Markets Day, June 2025 69 Urban Regeneration - Value Creation ▪ £3bn pipeline of secure opportunities ▪ Balanced portfolio to manage risk ▪ JVs give assess to opportunities and help manage risk ▪ c.5,000 residential units ▪ 55% of portfolio currently consented ▪ 2,200 residential units consented ▪ Local authority partnerships help derisk planning ▪ Established relationships delivering repeat business ▪ BTR and affordable housing improves capital efficiency ▪ Pre-letting de-risks investment and improves ROCE ▪ Integrated 360 opportunities ▪ 10 schemes completed or currently under construction ▪ Fee and income improving ROCE ▪ Prime locations, good tenants, long leases, sustainable buildings drive value ▪ Improving profitability helping deliver Group long term plan ▪ Targeted 15% ROCE on portfolio, from 2027 Lower Risk, Increased Liquidity, Increased Value (3-5 years) Acquire Land Obtain Planning Permission Secure OccupierBuild, Manage & Income Sell Investment
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Capital Markets Day, June 2025 70 Urban Regeneration - Value Creation cont. Kier’s public sector JV model provides margin protection compared to a traditional model ▪ Benefits ▪ Secure pipeline of work ▪ Consistent distribution of profit ▪ Insulates against market volatility ▪ Overhead efficiency ▪ Fee generation ▪ Efficient capital utilisation Upside Downside Traditionalmodel Land Development Costs Margin Margin Development Costs Margin Land Margin BaseCase Kier model Public sector JV model Land ▪ Kier public sector JV model – margin protected as overhead and margin pre-agreed. Land is the flexible denominator ▪ Over 60% of current portfolio sourced this way
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Capital Markets Day, June 2025 71 Watford Riverwell - Before
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Capital Markets Day, June 2025 72 Watford Riverwell - Masterplan * Land allocated – Herts County Council school site, as part of the section 106 agreement. Riverwell Masterplan Key Delivered to date Future phases Road Current phases
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Capital Markets Day, June 2025 73 Watford Riverwell - Financial Delivery Completion Phases Project GDV (100% built out) Actual Delivery Method Project Revenue Delivered 2013 – 2016 Road, Remediation & Planning – Phase 1 (£25m) Grant, Loan and Equity 2017 Industrial – Phase 2 £23m Build / Let / Sold £23m 2017 Residential – Phase 3 £31m Build and Sold £31m 2018 Senior Living – Phase 4 £88m Planning and Land Sale £18m 2019 Residential – Phase 5 £47m Planning and Land Sale £9m 2022 Hospital Car Park – Phase 6 £22m Sold & Forward Funded £22m 2023 Hospital Site – Phase 7 £75m Land Sale £13m 2025 Residential (single family) – Phase 8 £37m Build and Sold £37m 2025 Industrial – Phase 9 £9m Sold & Forward Funded £9m 2025 Hotel and Retail Phase – Phase 10 £25m Pre-Let / Build / Sell £25m 2025 Residential (single family) - Phase 11 £46m Planning and Land Sale TBC £403m £187m Forecast Completion Ph Project GDV Delivery Method 2026 Future Residential – Phase 12 £27m Planning and Land Sale TBC 2027 Future Residential – Phase 13 £51m Planning and Land Sale TBC 2028 Future Residential – Phase 14 £27m Planning and Land Sale TBC Watford Kier Peak Capital Kier Ave Capital Scheme Profit Full Project GDV (100% built out) Kier Fees & Interest IRR Land Value Overall Project £12.5m £6m £42m £508m £4.5m 25% £14m
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Kier Property - summary Strong Customer, Financial and Operational synergies with Kier’s other businesses1 2 3 4 Proven track record of delivery in the urban regeneration and property development market Large land bank giving access to £3bn of development opportunities Well positioned to capitalise on government growth agenda and Local Authority consolidation 74Capital Markets Day, June 2025 5 Ability to deliver consistent ROCE of 15% >60% of land sourced from lower-risk contracting model c.5,000 residential units can be delivered through the portfolio. 6 Long term existing public sector partnerships / relationships. £ £3bn pipeline of opportunity (Net £2bn Kier)
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Watford Riverwell Q&A
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Louisa Finlay Chief People Officer Sustainable Growth + TIDE Bankside
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Growth driven by synergies, through key interconnected capabilities across our businesses Construction Customer reach Purchasing power Shared services Financial Sustainability Multiple touch points, with customers served by more than one business Scale advantage delivering benefits through Group-wide purchasing Synergies Capabilities Our integrated 360 approach 77 Sustainability culture embedded throughout the Group Capital Markets Day, June 2025 Scale efficiencies and expert capabilities, through shared services Reinvestment of working capital inflows to enhance returns
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Kier Group, Capital Markets Day, 3 June 2025 78 Our integrated 360 approach 78Capital Markets Day, June 2025
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Develop ▪ Regenerating urban spaces, leaving lasting sustainable legacies ▪ Specialising in mixed-use, commercial and residential development ▪ Design and consulting solutions support clients’ estate and planning strategies ▪ Working across private and public sectors Kier Group, Capital Markets Day, 3 June 2025 79 Our integrated 360 approach 79Capital Markets Day, June 2025
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Design ▪ 750 strong in-house design team ▪ Providing sustainable solutions for clients with future maintenance in mind ▪ Delivering concepts, detailed technical design and design assurance ▪ Expertise in design to deliver major infrastructure and capital projects Kier Group, Capital Markets Day, 3 June 2025 80 Our integrated 360 approach 80Capital Markets Day, June 2025
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Engineer ▪ Driving operational value for clients with engineering-led solutions ▪ Delivering specialist engineering capability to resolve complex problems. ▪ Specialists in mechanical and electrical services, using the latest modern methods of construction Kier Group, Capital Markets Day, 3 June 2025 81 Our integrated 360 approach 81Capital Markets Day, June 2025
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Build ▪ Leading UK contractor, providing project delivery for public and private clients ▪ Combining national thinking and experience with local delivery from regional teams, tapping into local supply chains and resources, crafting exceptional projects for our clients Our integrated 360 approach 82Capital Markets Day, June 2025
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Maintain & operate ▪ Installing, maintaining and repairing buildings and infrastructure to latest standards ▪ Offering building solutions including survey, design, repairs, fire safety and compliance ▪ Maintaining and managing highways assets and delivering complex utilities projects ▪ Constructing and upgrading flood and coastal risk management projects, helping protect habitats and communities Our integrated 360 approach 83Capital Markets Day, June 2025
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Retrofit & repurpose ▪ Working with clients to support the whole building lifecycle ▪ Delivering high-quality, certified building work, focusing on safety, quality and compliance ▪ Providing sustainable retrofitting to meet carbon targets ▪ Experts in change of use and building conversion projects within a live environment, with minimal disruption to day-to-day operations Our integrated 360 approach 84Capital Markets Day, June 2025
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Our integrated 360 approach 85Capital Markets Day, June 2025
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A417, Gloucestershire Our 360 approach in action 86Capital Markets Day,, June 2025
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Logistics City, Bracknell ▪ First EPC A and net zero carbon scheme ▪ 96.3% BREEAM score ▪ £40m GDV project Our 360 approach in action ▪ Working closely with other Kier teams to save time and money 87Capital Markets Day, June 2025
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Mansfield Sustainable Drainage Systems (SuDS) Our 360 approach in action 88Capital Markets Day, June 2025
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Justice HMP Oakwood (2012) Our 360 approach in action ▪ The leading contractor in the justice sector ▪ A series of firsts: ▪ First Modern Methods of Construction (MMC) prison: HMP Oakwood ▪ First T60 houseblock design: HMP Five Wells ▪ First all-electric prison: HMP Millsike ▪ Blueprint for Ministry of Justice and Kier ▪ Using our expertise and experience for repeatability 89Capital Markets Day, June 2025
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HMP Five Wells (2018) Our 360 approach in action Justice ▪ The leading contractor in the justice sector ▪ A series of firsts: ▪ First Modern Methods of Construction (MMC) prison: HMP Oakwood ▪ First T60 houseblock design: HMP Five Wells ▪ First all-electric prison: HMP Millsike ▪ Blueprint for Ministry of Justice and Kier ▪ Using our expertise and experience for repeatability 90Capital Markets Day, June 2025
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Our 360 approach in action HMP Millsike (2025) Justice ▪ The leading contractor in the justice sector ▪ A series of firsts: ▪ First Modern Methods of Construction (MMC) prison: HMP Oakwood ▪ First T60 houseblock design: HMP Five Wells ▪ First all-electric prison: HMP Millsike ▪ Blueprint for Ministry of Justice and Kier ▪ Using our expertise and experience for repeatability 91Capital Markets Day, June 2025
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HMP Glasgow (under construction) Our 360 approach in action Justice ▪ The leading contractor in the justice sector ▪ A series of firsts: ▪ First Modern Methods of Construction (MMC) prison: HMP Oakwood ▪ First T60 houseblock design: HMP Five Wells ▪ First all-electric prison: HMP Millsike ▪ Blueprint for Ministry of Justice and Kier ▪ Using our expertise and experience for repeatability 92Capital Markets Day, June 2025
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Our integrated 360 approach - summary Our 360 approach underlines how our breadth, depth, scale and synergies support sustainable growth People and culture - to deliver high performance and continuous improvement1 2 3 4 End-to-end capabilities - across the country and the project lifecycle that leverage operational and Group synergies Design and digital first approach - to solve complex problems and deliver bespoke, value-add solutions. Partner of choice - a differentiated approach to drive outcomes for clients, people, places and planet to deliver increased margins and shareholder value. 93Capital Markets Day, June 2025
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TIDE Bankside Q&A
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Capital Markets Day Macfarlane Place 3 June 2025 Appendix
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Capital Markets Day, June 2025 96 Kier’s journey Rationalised, recapitalised and growing business. Focused on accelerating growth and returns 2019 2020 2021 2022 2023 2024 April 2019 New CEO, Andrew Davies Strategic Review June 2019 Cost savings of c. £100m implemented March 2020 New senior management team in place June 2020 Portfolio rationalisation and exiting loss making contracts May 2021 Refinancing package agreed Sale of housebuilding business, Kier Living June 2021 Equity raise 2022 - 2023 Delivering against medium-term value creation plan March 2024 Refinancing of credit facilities Re-entry to dividend list and FTSE 250 2025 + through the cycle ✓ Strategic review ✓ Cost reduction ✓ Legacy issues addressed ✓ Operational turnaround ✓ De-risked the business and rationalised portfolio ✓ Appointment of leadership team Rationalisation ✓ Sale of non-core business ✓ Capital raise ✓ Extension of credit facilities ✓ Focus on FCF generation ✓ Launch of medium-term plan Recapitalisation ✓ Growing high quality order book to c.£10.8bn ✓ Revenue, earnings and free cashflow growth ✓ Deleveraging with sight to average net cash ✓ Property capital allocation increased Growth September 2023 Bolt-on acquisition of Buckingham’s rail assets 2025 + Organic growth Dividends Investment in property Value accretive M&A Sustainable Growth Turnaround Phase