Keller Group Plc · LSE:KLR
Keller — FY2024 Earnings Presentation
44 slides from Keller's earnings presentation, Mar 4, 2025
Slide 1: Audited Preliminary Results for 2024
Keller Group plc X Audited Preliminary Results for 2024 4 March 2025 Disciplined execution driving improved performance
Slide 2: Cautionary statements
Cautionary statements This document contains certain 'forward-looking For a more detailed description of these risks, uncertainties statements' with respect to Keller's financial condition, and other factors, please see the Principal risks and results of operations and business and certain of uncert
Slide 3: Agenda
Agenda 01 Summary 02 Financial results 03 Business performance 04 Strategic progress 05 Summary and outlook 06 Questions and answers
Slide 4: Another outstanding result ahead of expectations with improved performance in all key measures
Another outstanding result ahead of expectations with improved performance in all key measures Underlying Underlying Underlying operating operating diluted Revenue profit margin EPS Order book 2024 dividend £2,986.7m £212.6m 7.1% 199.9p £1.6bn 49.7p +4% 1 +22%1 Up from 6.1% +30% Up 9%1 +10% • Anothe
Slide 5: Financial results
Financial results } KELLER
Slide 6: Summary income statement
Summary income statement 2024 2023 Non- Non- Underlying Total Underlying Total underlying underlying Revenue 2,986.7 - 2,986.7 2,966.0 - 2,966.0 Operating costs (2,775.4) (10.6) (2,786.0) (2,769.0) (22.5) (2,791.5) Net impairment loss of trade receivables and contract assets (12.0) - (12.0) (21.3) (
Slide 7: Summary income statement - underlying
Summary income statement - underlying 1. Revenue £m CC% FY 2023 2,966.0 2024 2023 FX (86.9) Underlying Underlying North America 72.3 +4.2% Revenue EME 43.3 +5.5% 2,986.7 1 2,966.0 APAC (8.0) -2.1% Operating costs (2,775.4) (2,769.0) FY 2024 2,986.7 +3.7% Net impairment loss of trade receivables and
Slide 8: Underlying operating profit bridge 2023 to 2024
Underlying operating profit bridge 2023 to 2024 EME APAC Central items North America Down £1.7m1 Up £14.6m1 Up £0.9m1 Up £26.3m1 to £190.0m to £7.9m to £28.7m to £14.0m £m 220.0 17.5 18.2 14.8 (0.2) 210.0 (0.9) 212.6 (18.1) (18.1) (19.9) (1.9) (19.9) 200.0 28.8 190.0 180.0 180.9 (6.6) (6.6) 170.0 20
Slide 9: Summary income statement - non-underlying
Summary income statement - non-underlying 1. Non-underlying items 2024 Non- Cash items £m Underlying Total underlying ERP costs (4.0) Revenue Restructuring (4.3) 2,986.7 - 2,986.7 Total cash items (8.3) Operating costs (2,775.4) (10.6) (2,786.0) Net impairment loss of trade receivables and Non-cash
Slide 10: Net debt flow
Net debt flow £m FY 2024 FY 2023 1. Depreciation/Capex 2024 2023 Underlying operating profit 212.6 180.9 Net capex/depreciation 79% 96% Depreciation, amortisation and impairment 108.8 1 112.2 Gross capex/depreciation 106% 114% Underlying EBITDA 321.4 293.1 Non-cash items (13.5) (4.0) Decrease in wor
Slide 11: Balance sheet
Balance sheet 1. Intangibles incl. goodwill Opening £m 114.6 Amortisation (3.4) £m FY 2024 FY 2023 FX - Closing 111.2 Intangibles incl. goodwill 111.2 1 114.6 2. Tangible fixed assets £m Managed assets Opening 480.2 Tangible fixed assets 461.4 2 480.2 Capital expenditure 89.0 Debtors and inventory 8
Slide 12: Significant deleveraging - net debt down 80%
Significant deleveraging - net debt1 down 80% £m 2023 2024 254 255 257 250 245 237 244 235 224 209 160 146 130 126 120 105 111 104 94 91 89 96 25 30 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec • Net debt1: £29.5m decreased by £116.7m, down 80% (2023: £146.2m) • Average month-end net debt1: £97m,
Slide 13: Financial modelling considerations
Financial modelling considerations 2024 2025 considerations Trading NA – Foundations Buoyant market conditions Normalisation of market conditions Sustained operational performance Expect to maintain improved operational performance NA – Suncoast Profitability negatively impacted by pricing Performan
Slide 14: Financial summary – Outstanding FY24
Financial summary – Outstanding FY24 Revenue Operating profit1 Operating profit margin1 £2,986.7m +1% £212.6m +18% 7.1% +100bps 2024 2024 2024 2023: £2,966.0m 2023: £180.9m 2023: 6.1% 2022: £2,944.6m 2022: £108.6m 2022: 3.7% ROCE Net debt / EBITDA (pre-IFRS16) Free cash flow 28.2% +540bps 0.1x -80%
Slide 15: Business performance
Business performance } KELLER
Slide 16: Safety and wellbeing
Safety and wellbeing Performance Accident Frequency Rate (AFR) • AFR is 0.05, a significant improvement y-o-y 0.61 • TRIR is 0.55, with continued improvement 0.39 0.35 0.34 Key actions 0.23 0.19 0.07 0.1 0.1 0.05 0.15 0.12 • More in-depth approach to assurance with 2013 2014 2015 2016 2017 2018 2019
Slide 17: Carbon performance
Carbon performance 10,000 Scope 4 business units are net 8,000 2 zero. tCO2e 6,000 100% business units 4,000 2,000 reduced from their baseline. 0 100 250,000 Scope 10 efficiency case studies. tCO2e/£m revenue 80 200,000 1 tCO2e 60 150,000 6 business units trialled 40 100,000 biofuels. 20 50,000 3 el
Slide 18: Record year-end order book at £1.6bn
Record year-end order book at £1.6bn Geographic mix (full order book) Order book (£m) Group 1,800 £1.6bn 1,600 North America1 1,400 £1.1bn +24% 1,200 EME1 £302.1m -21% 1,000 800 APAC1 unchanged £177.5m 600 2020 2021 2022 2023 2024 1Prepared on a constant currency basis 18
Slide 19: North America Operating review
North America Operating review £m 2024 2023 Constant Colorado £m £m currency USA Revenue 1,785.8 1,770.0 +4.2% Underlying operating profit 190.0 169.6 +16.1% Underlying operating margin 10.6% 9.6% +100ps Order book 1,130.4 904.6 +23.7% • Revenue: increased 4.2% largely driven by higher trading in Fo
Slide 20: Europe and Middle East Operating review
Europe and Middle East Operating review £m 2024 2023 Constant Tangenvika currency Peterborough Norway UK Revenue 835.1 808.0 +5.5% Underlying operating profit 7.9 9.8 -17.7% Underlying operating margin 0.9% 1.2% -30bps Order book 302.1 397.8 -21.0% • Revenue: +5.5%, reflecting improved performance i
Slide 21: Asia-Pacific Operating review
Asia-Pacific Operating review £m 2024 2023 Constant Victoria currency Australia Revenue 365.8 388.0 -2.1% Underlying operating profit 28.7 14.6 +103.5% Underlying operating margin 7.8% 3.8% +400bps Order book 177.5 186.7 -0.3% • Revenue: revenues decreased by 2.1%, largely due to a strong prior year
Slide 22: Strategic progress
Strategic process } KELLER
Slide 23: Our Strategy
Our Strategy To be the preferred international geotechnical specialist contractor focused on sustainable markets and attractive projects, generating long term value for our stakeholders Our local businesses will leverage the group’s scale and expertise to deliver engineered solutions and operational
Slide 24: Strategic progress 2019 - 2024
Strategic progress 2019 - 2024 Focused portfolio • Exited 16 non-core geographies • Exited 6 non-core product lines • Restructured numerous elements of the Group to develop focus Improved performance • Improved project execution • Stronger commercial focus • Enhanced business management • Stronger m
Slide 25: Strategic progress 2025 onwards
Strategic progress 2025 onwards Grow • Organic market penetration in existing geographic footprint (cross selling) • Targeted acquisitions to accelerate market share development (low risk bolt-ons adding scale to existing/known technique/location footprint) • Focus on local markets with higher rates
Slide 26: Summary and outlook
Summary and outlook } KELLER
Slide 27: Summary and outlook
Summary and outlook 2024 Summary – Another outstanding performance • Another outstanding year, building on the material step-up delivered in 2023 • Outperformed in all KPIs • In recognition of recent performance and future growth prospects • Dividend increased by 10% • Launching a multi-year share b
Slide 28: Questions and answers
Questions and answers } KELLER
Slide 29: Keller overview
Keller overview } KELLER
Slide 30: Keller today
Keller today Every day millions of people around the world live, work and play on ground prepared by Keller Three divisions Our purpose Our vision Our values 14 business units To build the To be the Integrity foundations for leading provider a sustainable of specialist Collaboration 170 future geote
Slide 31: Building the foundations for a sustainable future
Building the foundations for a sustainable future • Diverse geographies Resilient • Diverse market sectors revenues • Diverse products • Diverse customers • Specialist project profile Firm Sustainable • Improved focus on quality of margin foundations margins • Strong competitive position • Proprieta
Slide 32: Well balanced in terms of geography and sector
Well balanced in terms of geography and sector • Operating globally in a number of sectors gives us the resilience to trade through national cyclicality • Good access to all markets with no overweight exposure • Geopolitically secure Revenue by geography (2024) Revenue by sector (2024) AMEA APAC 14%
Slide 33: The best solutions
The best solutions • Projects often require a variety of techniques • With access to our global knowledge base and industry leading product portfolio, our engineers can design the best solutions that reduce materials, cost and time for our clients • Our project management capabilities mean we can al
Slide 34: Diverse customer base
Diverse customer base • Our large client spread means we’re not overly reliant on certain customers • Contracts over £5m revenue make up around 2% of the number of contracts, but account for 43% of total revenue Revenue by contract size (2024) Number of contracts (2024) Above £5m - 2% £1m to £5m - 8
Slide 35: Geotechnical market size
Geotechnical market size A strong position but plenty of room to grow • We are the world’s largest geotechnical specialist contractor • We have 12.5% market share of the markets in which we operate • We still have potential to grow our Geotechnical market share in our chosen regions market size • Ou
Slide 36: Specialist versus generalist business model
Specialist versus generalist business model Project lifespan Keller General contractor Ground engineering General construction • Early stage • Longer, larger projects • Lower cyclicality • National focus • Specialist design capability • Higher cyclicality • A mix of contracts • Integration of multip
Slide 37: Market demand trends play to our strengths
Market demand trends play to our strengths Urbanisation and more large- 65m people will be added to urban population 01 scale development projects every year. 67% of the world’s population will live in metropolitan regions by 2040 Increasing land shortage, 02 driving a need to use more brownfield an
Slide 38: Factors to consider in geotechnical engineering
Factors to consider in geotechnical engineering Site conditions Requirements Loading Constraints • Performance conditions • Neighbouring • Sand, silt, clay, rock, organic (allowable • Spread, low buildings settlements) intensity • Loose, soft, stiff, • Noise, vibration hard, porous • Schedule • Slen
Slide 39: Full product range
Full product range Right combination of products leads to optimal solutions for the soil conditions and structure type 39
Slide 40: Value engineering with an equipment advantage
Value engineering with an equipment advantage • World’s largest equipment fleet with flexibility to move between markets to match local demand • 1,650 engineers; some focused purely on design • 50% of projects are ‘design and build’ where value engineering can substantially reduce cost and save time
Slide 41: Our people
Our people The right organisation, with great people, delivering exceptional performance Safety • Significant improvement, with Accident Frequency Rate halved year-on year and a notable reduction in Total Recordable Incident Rate Quality education • Strengthening talent development through a new glo
Slide 42: Resilient financial performance since listing in ‘94
Resilient financial performance since listing in ‘94 42 2024 2024 2023 2023 2022 2022 2021 2021 2020 2020 2019 2019 2018 2018 2017 2017 Underlying operating profit (£m) 2016 2016 Keller TSR of 70% vs. FTSE All Share TSR of 9% (2024) 2015 2015 2014 2014 2013 2013 2012 2012 2011 2011 2010 2010 2009 20
Slide 43: Keller fact sheet
Keller fact sheet • Established 1860, now world’s largest geotechnical specialist • Approx. 50% of our contracts are design and build. contractor globally • Contracts over £5m revenue make up around 2% of the • Revenue by division: North America 60%; Europe 28%; AMEA number of contracts, but account
Slide 44: Investor Relations contact
Investor Relations contact Caroline Crampton Group Head of Investor Relations +44 20 7616 7575 caroline.crampton@keller.com 44