Kier Group Plc · LSE:KIE
Kier — Investor Day (June 2025)
96 slides from Kier's investor day presentation, Jun 3, 2025
Slide 1: Capital Markets Day
Capital Markets Day 3 June 2025 Marylebone Square
Slide 2: Disclaimer
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 th
Slide 3: Welcome
Welcome Andrew Davies Chief Executive HMP Millsike
Slide 4: Our team
Our team Experienced leadership team focused on execution Andrew Davies * Simon Kesterton * Louisa Finlay * Sophie Timms Stephen Milne Chief Executive Officer Chief Financial Officer Chief People Officer Corporate Affairs Director General Counsel Stuart Togwell * Leigh Thomas * Andrew Bradshaw * Joe
Slide 5: Agenda
Agenda 14.00 Welcome Stand presentations Our investment case 14.05 – 14.20 Andrew Davies, Chief Executive Officer 1. Construction 2. Transportation Stuart Togwell Joe Incutti Our sustainable growth plan Group Managing Director Group Managing Director 14.20 – 14.30 Simon Kesterton, Chief Financial Of
Slide 6: Today's objectives
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 sustaina
Slide 7: Current trading
Current trading The Group continued to trade well and in line with the Board’s expectations in the period to 30 April 2025. 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
Slide 8: Who we are
Who we are The largest supplier to the UK government of infrastructure services, together with key construction and property development projects Key financials ▪ FY24 revenue: £4.0bn ▪ FY24 adj. operating profit FY24: £150m c.10,000 400+ Strategic supplier ▪ Order book £11bn (December 2024) live pr
Slide 9: Our business model
Our business model Strong cashflow generation allows disciplined investment of cash Construction Natural Resources, Transportation Property Nuclear & Networks Urban Regeneration Delivers public and private Repairs, maintains and Designs, builds and Invests and develops sites: sector projects for: de
Slide 10: Our investment case
Our investment case Andrew Davies Chief Executive 19 Cornwall Street
Slide 11: Our investment case
Our investment case Value accretive Attractive Experienced earnings-led business Strong order book market positions management team model Delivering sustainably Focused on UK Infrastructure Underpinned by long-term Proven track record stronger returns Services and Construction, contracts and framewo
Slide 12: Our strategy
Our strategy Leveraging our attractive market positions to sustainably deliver infrastructure vital to the UK Revenue by customer (over 90% Public/Regulated) Private Commercial, Industrial Regulated 8% Water, Energy 11% Central Government Justice, Defence, Transport, 53% Education, Health, Wide Publ
Slide 13: Unique regional footprint
Unique regional footprint National capability and local execution through wide regional presence ▪ 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 o
Slide 14: Our impact
Our impact Committed to delivering infrastructure vital to the UK, adding value to the communities we operate in Maintain over £3bn GDV pipeline Laid of opportunities 21,000km available to Property Delivering over of local authority 102km joint ventures and strategic 80km of electricity roads of HS2
Slide 15: Our integrated 360 approach
Our integrated 360 approach Growth driven by synergies, through key interconnected capabilities across our businesses Synergies Capabilities Multiple touch points, with customers served by Customer reach more than one business Purchasing power Scale advantage delivering benefits through Group-wide p
Slide 16: Macro environment
Macro environment Economic and political factors provide supportive environment for growth Economic, Regulatory and Political Landscape Short term A move away from globalisation, as well as a need for increased productivity and growth, driving political and economic decision-making. Economic and pol
Slide 17: Government agenda vs our abilities
Government agenda vs our abilities Well-placed to support government priorities Government priorities Our abilities We operate on 123 frameworks regionally and nationally Kickstart economic growth across economic and social infrastructure Experience on strategic frameworks across economic and 10-yea
Slide 18: UK Government and regulated industry priorities
UK Government and regulated industry priorities 10-year economic, social infrastructure and housing strategy (June) will supplement existing spend Infrastructure Services Transportation and Natural Resources, Nuclear & Networks - 52% of Revenue (H1 25) Roads and Rail Water and Environment Energy £4.
Slide 19: UK Government spending commitments
UK Government spending commitments Focused on schools, hospitals, housing, prisons and defence Construction & Property 48% of Revenue (H1 25) Justice & Housing Urban Education Healthcare Defence Borders Maintenance Regeneration DfE – launched New Hospital Total prison Government Retrofitting and Geo
Slide 20: Our addressable market
Our addressable market Significant addressable market opportunity across our core sectors Roads Repairs & Maintenance ▪ Total Group framework awards: 8% Commercial £158bn covering on average 3-4 Roads New 23% years 13% Infrastructure Construction Services £29bn £35bn ▪ Over 60 % of our FY24 revenue
Slide 21: Our sustainable growth plan
Our sustainable growth plan Simon Kesterton Chief Financial Officer Moors at Arne
Slide 22: Long-term sustainable growth plan
Long-term sustainable growth plan Long-term targets to drive shareholder value and superior margins ▪ 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 Natural position with investment of su
Slide 23: Growth underpinned by order book and frameworks
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 Infrastructure Services Construction R
Slide 24: Framework positions
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
Slide 25: Financing and liquidity
Financing and liquidity Unique access to capital debt markets, provides further support for growth strategy Maturities by calendar year (£m) ▪ £400m of facilities in place: 300 ▪ £250m Senior Loan Notes due February 2029 250 ▪ £150m RCF to March 2027 200 150 100 50 0 2026 2027 2028 2029 Senior Notes
Slide 26: Track record of delivery
Track record of delivery Significant progression in operational delivery reflected in results Order book Revenue Adjusted operating profit £4.0bn £150m £10.8bn £132m £10.1bn £3.4bn £121m £9.8bn £3.3bn FY22 FY23 FY24 FY22 FY23 FY24 FY22 FY23 FY24 Earnings per share Free cashflow Av. month-end net deb
Slide 27: Capital allocation
Capital allocation Recurring cashflow and efficient use of balance sheet provide opportunities to create value through focused capital allocation Capital allocation 1 Capex ▪ Ongoing investment to support the business ▪ Progressive policy increasing through earnings growth 2 Ordinary dividend ▪ Targ
Slide 28: Summary
Summary Andrew Davies Chief Executive Shakespeare North Playhouse
Slide 29: Summary
Summary 1 Industry-leading profitability: 4.0%-4.5% margin (AOP) 2 Multi-year revenue visibility, through strong order book: £11bn and £158bn of framework positions 3 Superior returns through investment in Property business 4 Experienced management team, with track record of delivery Capital Markets
Slide 30: Final remarks
Final remarks Andrew Davies Chief Executive Keighley Marley
Slide 31: Summary
Summary 1 Industry-leading profitability: 4.0%-4.5% margin (AOP) 2 Multi-year revenue visibility, through strong order book: £11bn and £158bn of framework positions 3 Superior returns through investment in Property business 4 Experienced management team, with track record of delivery Capital Markets
Slide 32: Q&A
Q &A E
Slide 33: Construction
Construction Stuart Togwell Group Managing Director Mulberry Dock Academy
Slide 34: A history of continued excellence
A history of continued excellence 1928 1944 1963 1977 1983 2000 Kier founded in Stoke on Trent by Olaf Hector Kier (born Kiaer) Mulberry Iron Bridge Itchen Bridge, Gatwick Airport Harbour Cooling Towers Southampton North Terminal Wellcome wing Prefabricated 3ft high rings of Innovative method of Ena
Slide 35: Introduction
Introduction We work for: We build: ▪ Department for ▪ One of the largest regional Education based builders ▪ Ministry of Justice Delivering over 200 projects ▪ Department of Health & ▪ Breadth of capability Social Care From smaller works to ▪ Crown Commercial £680m+ projects delivered Service by ou
Slide 36: A proven track record
A proven track record Education Healthcare Justice & Borders Defence Appointed to 266 Education projects 151 Healthcare projects 17 T60 houseblocks £5.1bn completed completed in delivered for in the last six the last six Defence Estate the MoJ years years Optimisation Portfolio Private Sector Facili
Slide 37: Long term relationships built on trust
Long term relationships built on trust Working together for Working together for Working together for Working together for 14 Years 23 Years 20 Years 6 Years Working together for Working together for Working together for Working together for 16 Years 14 Years 16 Years 5 Years Capital Markets Day, Ju
Slide 38: Order book and pipeline
Order book and pipeline Strong order book and pipeline of £4.5bn Underpinned by 33 national and 37 regional framework positions Access to frameworks worth a total advertised value of c. £127bn, on a two-stage basis TIDE Bankside Capital Markets Day June 2025 38
Slide 39: Discipline at scale
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 throug
Slide 40: How do we maintain our position as a leading contractor?
How do we maintain our position as a leading contractor? Kier Group, Capital Markets Day, 3 June 2025 40
Slide 41: 1. Innovation through digital
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 insig
Slide 42: 2. Leaving lasting legacies
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
Slide 43: 3. Forefront of energy resilience
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 Capital Markets
Slide 44: 4. Surpassing our clients' needs
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 Capital Markets Day, June 2025 44
Slide 45: 5. The sum of our parts – breadth of services across Group
5. The sum of our parts – breadth of services across Group Capital Markets Day, June 2025 45
Slide 46: Kier Construction - summary
Kier Construction - summary 1 Market-leading position in construction. We build as a trusted partner to government and blue-chip clients and maintain public sector properties and housing 2 Strong order book and pipeline of £4.5bn and access to £127bn frameworks, procured predominantly on a two-stage
Slide 47: Q&A
Q&A Shakespeare North Playhouse
Slide 48: Transportation
Transportation Joe Incutti Group Managing Director A417
Slide 49: Introduction
Introduction Leading provider of sustainable transport infrastructure solutions Our work: • Providing critical transport infrastructure across the country, enabling millions of journeys each day • One-stop service provider, offering design, Transportation revenues (HY25) construction, and maintenanc
Slide 50: Market summary
Market summary ▪ 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 Government Investment Committed 2024
Slide 51: Kier Design: our integrated 360 approach
Kier Design: our integrated 360 approach Providing growth opportunities through our unique 750 strong internal design team and digital solutions capability Fully-integrated design, Managing risk responsibly build and maintain through the design process Industry-leading, Design solutions that are des
Slide 52: Our current key clients and sectors
Our current key clients and sectors Highways Rail Aviation (in collaboration with Kier Places and Construction) Capital Markets Day June 2025 52
Slide 53: i | AE
i | AE
Slide 54: Transportation - summary
Transportation - summary Providing the transport infrastructure essential to a thriving economy and our communities 1 A market leading position (top 3 in highways across Maintenance & Operations, and Projects) 2 Leading industry integrator with in-house design, construction, maintenance and digital
Slide 55: Q&A
~ KIER Q&A
Slide 56: Natural Resources, Nuclear & Networks
Natural Resources, Nuclear & Networks Andrew Bradshaw Group Managing Director South West Water
Slide 57: Natural Resources, Nuclear & Networks Introduction
Natural Resources, Nuclear & Networks Introduction Our purpose is to sustainably deliver essential services and major infrastructure to the UK We are strategically positioned to respond to the Revenues (HY25) future investment in water infrastructure, nuclear & energy, and environmental resilience ▪
Slide 58: Market opportunities
Market opportunities Water Environment Nuclear & Energy Record investment of £104bn The Environment Agency has Nuclear power generation to (access to £15bn of frameworks) stated that £1bn needs to be spent increase UK contribution four- approved by regulator Ofwat for every year for the next 50 year
Slide 59: Our key clients
Our key clients Growth with new Growth with existing Capital Markets Day, June 2025 59
Slide 60: Case study: Toddbrook Reservoir
Case study: Toddbrook Reservoir Then ▪ 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
Slide 61: Case study: Toddbrook Reservoir
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 supp
Slide 62: Case study: Toddbrook Reservoir
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 clubh
Slide 63: Natural Resources, Nuclear & Networks - summary
Natural Resources, Nuclear & Networks - summary 1 A market leading position in Water with access to c.£15bn of Frameworks 2 Unique approach to all things Water, with extensive reach into transferable skills and knowledge 3 Resources and expertise to deliver major infrastructure in Nuclear licensed e
Slide 64: Q&A
~ KIER Q&A ¥ South West Water
Slide 65: Property: Urban Regeneration
Property: Urban Regeneration Leigh Thomas Group Managing Director Guildford Station
Slide 66: Introduction
Introduction £3bn GDV1 mixed-use pipeline opportunity Investing in brownfield sites to revitalise communities through public and private partnerships + = 15 Commercial 19 Residential 34 Projects Development Development Across the UK £225m2 of Kier Capital to deliver a pipeline of opportunity of up t
Slide 67: Property Market Drivers and Opportunities
Property Market Drivers and Opportunities Demographic changes Economic Growth Changing Consumer Demand Climate Change Demographic changes UKUKpopulation population toto grow grow5m+ 5m+ byby 2032, rapid 2032, Industrial and Infrastructure Strategies are Online retail now 27% of all sales + demand Oc
Slide 68: Group and Partnership Synergies
Group and Partnership Synergies Capital Markets Day, June 2025 68
Slide 69: Urban Regeneration - Value Creation
Urban Regeneration - Value Creation Acquire Obtain Planning Build, Manage & Secure Occupier Sell Investment Land Permission Income ▪ £3bn pipeline of secure ▪ 55% of portfolio ▪ Integrated 360 ▪ Established ▪ Prime locations, good opportunities currently consented opportunities relationships deliver
Slide 70: Urban Regeneration - Value Creation cont.
Urban Regeneration - Value Creation cont. Kier’s public sector JV model provides margin protection compared to a traditional model ▪ Kier public sector JV model – margin Kier model protected as overhead and margin Traditional model Public sector JV model pre-agreed. Land is the flexible Upside Land
Slide 71: Watford Riverwell - Before
Watford Riverwell - Before Capital Markets Day, June 2025 71
Slide 72: Watford Riverwell - Masterplan
Watford Riverwell - Masterplan Riverwell Masterplan Key Delivered to date Current phases Future phases Road * Land allocated – Herts County Council school site, as part of the section 106 agreement. Capital Markets Day, June 2025 72
Slide 73: Watford Riverwell - Financial Delivery
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 £3
Slide 74: Kier Property - summary
Kier Property - summary 1 Strong Customer, Financial and Operational synergies with Kier’s other businesses 6 Long term existing public 2 sector partnerships / Proven track record of delivery in the urban relationships. regeneration and property development market >60% of land sourced from lower-ris
Slide 75: Q&A
~ KIER Q&A Watford Riverwell =
Slide 76: Sustainable Growth +
Sustainable Growth + Louisa Finlay Chief People Officer TIDE Bankside
Slide 77: Our integrated 360 approach
Our integrated 360 approach Growth driven by synergies, through key interconnected capabilities across our businesses Synergies Capabilities Multiple touch points, with customers Customer reach served by more than one business Purchasing power Scale advantage delivering benefits through Group-wide p
Slide 78: Our integrated 360 approach
Our integrated 360 approach Kier Group, Capital Markets Day,Markets 3 JuneDay, 2025 78 Capital June 2025 78
Slide 79: Our integrated approach: Develop
Our integrated 360 approach 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
Slide 80: Our integrated approach: Design
Our integrated 360 approach 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 Gro
Slide 81: Our integrated approach: Engineer
Our integrated 360 approach 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, Cap
Slide 82: Our integrated approach: Build
Our integrated 360 approach 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 Cap
Slide 83: Our integrated approach: Maintain & operate
Our integrated 360 approach 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 utilit
Slide 84: Our integrated approach: Retrofit & repurpose
Our integrated 360 approach 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 bu
Slide 85: Our integrated approach
Our integrated 360 approach Capital Markets Day, June 2025 85
Slide 86: A417, Gloucestershire
A417, Gloucestershire Our 360 approach in action Capital Markets Day,, June 2025 86
Slide 87: Logistics City, Bracknell
Logistics City, Bracknell Our 360 approach ▪ Working closely with other Kier ▪ First EPC A and net zero in action carbon scheme teams to save time and money ▪ £40m GDV project ▪ 96.3% BREEAM score Capital Markets Day, June 2025 87
Slide 88: Mansfield Sustainable Drainage Systems (SuDS)
Mansfield Sustainable Drainage Systems (SuDS) Our 360 approach in action Capital Markets Day, June 2025 88
Slide 89: Justice
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
Slide 90: Justice
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
Slide 91: Justice
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
Slide 92: Justice
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
Slide 93: Our integrated approach - summary
Our integrated 360 approach - summary Our 360 approach underlines how our breadth, depth, scale and synergies support sustainable growth 1 People and culture - to deliver high performance and continuous improvement 2 End-to-end capabilities - across the country and the project lifecycle that leverag
Slide 94: Q&A
Q&A TIDE Bankside
Slide 95: Appendix
Capital Markets Day 3 June 2025 Appendix Macfarlane Place
Slide 96: Kier's journey
Kier’s journey Rationalised, recapitalised and growing business. Focused on accelerating growth and returns 2019 2020 2021 2022 2023 2024 2025 + through the cycle April 2019 March 2020 May 2021 2022 - 2023 March 2024 2025 + New CEO, New senior Refinancing Delivering against medium-term value Refinan