Slide 1: Serco: the mission-critical partner to governments globally
Serco: the mission-critical partner to governments globally Investor briefing 2026
Slide 2: Bringing international best practice & private sector innovation to government services
Bringing international best practice & private sector innovation to government services Our Vision and Mission… Our Sectors Enabling critical Government missions globally Defence Justice & Immigration Citizen Services Our Values Trust Care Innovation Pride 25+ Countries 650+ Contracts 54k+ Colleague
Slide 3: The 'Four Forces' drive demand
The ‘Four Forces’ drive demand Structural drivers of demand create need where we have expertise Voter Rising Balancing Growing intolerance expectations public costs of higher of citizens expenditure taxes Case study: Cabinet Office research reaffirms efficiency gains of private sector 2 Years of abo
Slide 4: Efficiency, quality & capability: why governments partner with the private sector
Efficiency, quality & capability: why governments partner with the private sector Beyond efficiency: how the private sector strengthens public services Flexibility International Risk & agility best practice management Efficiency & Innovation & Lower cost, productivity technology better value Case st
Slide 5: A global & sectoral footprint across the most attractive markets
A global & sectoral footprint across the most attractive markets Our international platform gives us reach into And our sectoral mix sits across the the world’s largest government services markets key government areas of spending North America UK & Europe FY25 revenue mix, including share of joint v
Slide 6: Long track record of delivery
Long track record of delivery Revenue (£bn) Underlying EPS (p) 4.9 16.93 3.2 7% >2.5x CAGR 6.16 increase 2019 2025 2025 2019 2025 Free cash flow (£m) Pipeline (£bn) 219 12.1 >£1bn >2 x cash 4.9 increase 62 generated 2019 2025 2025 2019 2025 6 All CAGRs & total cash generated cover six -year
Slide 7: Decisive actions are driving margin accretion
Decisive actions are driving margin accretion Underlying operating profit margin % 6.2 6.0 5.7 5.6 Target range 5-6% 5.2 5.2 5.1 3.7 2.7 FY16 FY19 FY21 FY22 FY23 FY24 FY25 HY26 FY26 Guidance On -contract Scaling complex Cost Portfolio Targeted growth contracts discipline management M&A expanding ser
Slide 8: Our defence exposure is growing to more than 40% of the business
Our defence exposure is growing to more than 40% of the business Share of revenue incl. share of joint ventures (£bn / %) Rev. CAGR 3.64 4.25 4.66 4.77 5.35 5.29 5.39 31% Defence 34% 33% 30% 34% 36% 39% 9% 25% 18% J&I 16% 17% 31% 33% 29% 18% Citizen Services 50% 50% 52% 54% 35% 31% 32% (5)% FY19 FY2
Slide 9: A more agile Serco through simplifying how we operate
A more agile Serco through simplifying how we operate At FY25 we simplified our sectors… we will refine our operating structure, driving further focus & efficiency Five Sectors Four Divisions Defence Justice & Citizen Health Transport North UK & Middle Asia Immigration Services & FM America Europe E
Slide 10: Divisional focus North America
Divisional focus North America
Slide 11: North America: strong pipeline balances delayed adjudications
North America: strong pipeline balances delayed adjudications Market dynamics Serco’s platform Growth opportunity Largest gov. services market Embedded customer relationships Historic US defence budget Serco’s largest Division by profit including US Navy, Army, Air & ~$1trn US defence appropriations
Slide 12: North America: organic expansion of our technology-enabled platform
Growth North America: organic expansion of our technology-enabled platform Comprehensive Error Rate Oversees Testing (CERT) $1trn+ secured H1 2026 annual healthcare spending $109m seven -year contract Identification AI & intelligent of improper ~70m document 2013 payments Americans served processing
Slide 13: Divisional focus UK & Europe
Divisional focus UK & Europe
Slide 14: UK&E: fiscal pressures, efficiency & defence investment underpin demand
UK&E: fiscal pressures, efficiency & defence investment underpin demand Market dynamics Serco’s platform Growth opportunity Large & growing market Embedded delivery Growth momentum largest outside NA, robust & tested over 60yrs operating critical services revenues up 8% year -on -year procurement pr
Slide 15: UK&E: mobilising next generation maritime services
Operational excellence UK&E: mobilising next generation maritime services Mobilising the Demonstrates Includes Royal Navy’s Defence Marine our ability to 24 new Services Next mobilise, vessels Generation modernise programme & expand large complex defence operations Critical £1bn+ infrastructure In H
Slide 16: Divisional focus Asia Pacific & Middle East
Divisional focus Asia Pacific & Middle East
Slide 17: ASPAC & ME: renewed defence & justice demand, modernisation programmes drive investment
ASPAC & ME: renewed defence & justice demand, modernisation programmes drive investment Market dynamics Serco’s platform Growth opportunity Established markets in ASPAC Exposure to in -demand services Strong momentum in ASPAC justice with track -record of sustained demand strong defence & justice ca
Slide 18: ASPAC: leveraging our international justice expertise
Competitiveness ASPAC: leveraging our international justice expertise Secured a five -year Acacia Prison ~190% £400m extension ASPAC of awards book -to-bill in Justice sector Builds on ASPAC momentum in £320m Justice including: total contract value >£60m, five -year Adelaide Excellent Remand Centre
Slide 19: Sector focus Defence
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Slide 20: Defence: Our capabilities are essential as national security focus intensifies
Defence: Our capabilities are essential as national security focus intensifies Market dynamics Serco’s platform Growth opportunity Geopolitical tensions Footprint in largest Defence bids are over half driving rapid rearmament markets of pipeline all Five Eyes & several NATO with vast majority in N.
Slide 21: Defence: We have deep expertise in areas of growing demand
Defence: We have deep expertise in areas of growing demand Advisory & Acquisition Support Operations Design & Delivery Base Services & Logistics Expert guidance, including in the Delivery of key support services, freeing Architecture & design of vessels, Facilities management for military procuremen
Slide 22: Defence: Delivering full career lifecycle services for military personnel
Defence: Delivering full career lifecycle services for military personnel Recruitment Health, fitness Training & skills Housing & Transition & & readiness living support veterans support Prime contractor for Delivery of the “the In 2025, alongside Through our joint We support the transformational la
Slide 23: Defence: We continue to curate a targeted platform of capabilities
Defence: We continue to curate a targeted platform of capabilities - organically & through bolt-on acquisitions Personnel Asset Personnel Personnel Services Management Services Services Organic Recruit, train, & workforce JV with Engie to support UK Optimisation of US Army physical Next -gen recruit
Slide 24: Sector focus Justice & Immigration
Sector focus Justice & Immigration
Slide 25: Justice & Immigration: Long-term immigration demand drivers continue
Justice & Immigration: Long-term immigration demand drivers continue, appetite for innovation in justice services Market dynamics Serco’s platform Growth opportunity Structural drivers continue Market -leading position Global best -practice in migration - climate, conflict across several European de
Slide 26: Justice & Immigration: UK and Europe continue to experience elevated migration flows
Justice & Immigration: UK and Europe continue to experience elevated migration flows In 2025, over 166,000 migrants were detected June 2025, net migration to the UK was crossing into Europe through five major routes recorded as 204,000 Western Mediterranean UK Entry 1 Via Morrocco into Spain 18,987
Slide 27: Justice & Immigration: Delivering international best-practice across end-to-end services
Justice & Immigration: Delivering international best-practice across end-to-end Justice & Immigration services Immigration – from border security to integration, supporting governments to manage complex demands Accommodation Integration support Housing management Community & social inclusion & livin
Slide 28: Justice & Immigration: A pan-European platform
Justice & Immigration: A pan-European platform, equipped to support governments address future challenges A market -leader in the UK and Europe built via organic growth, supported by in -fill acquisitions Significant UK portfolio Acquired: 2022 Acquired: 2024 Delivering strong growth through operati
Slide 29: Sector focus Citizen Services
Sector focus Citizen Services
Slide 30: Citizen Services: Customers seek efficiency & innovation as essential services are modernised
Citizen Services: Customers seek efficiency & innovation as essential services are modernised Market dynamics Serco’s platform Growth opportunity Efficiency focus Diverse, scalable solutions Transformation as budgets come under can adapt to meet demand programmes pressure seeking efficiency & improv
Slide 31: Citizen Services: People-delivered, technology-enabled essential services
Citizen Services: People-delivered, technology-enabled essential services A long track -record in using technology to enable efficient and improved outcomes… Center for Medicare and Medicaid Services • Robotic process automation utilised for over 10 years • Embedded AI to improve processing times an
Slide 32: Disciplined risk management & strong opportunity pipeline
Disciplined risk management & strong opportunity pipeline
Slide 33: Largest new business pipeline in over a decade at ~£12.8bn
Largest new business pipeline in over a decade at ~£12.8bn New Business Pipeline, £bn 12.8 12.1 11.2 9.9 10.2 • Highest pipeline in over a decade 8.4 • High quality bids, aligned to the Group’s strategy 6.4 • Significant amount of our pipeline sits in Defence, with a 4.9 good portion of this in Nort
Slide 34: Contract retention and new business win rates
Contract retention and new business win rates New business and contract retention rates by value, % • Consistently strong win rates – regularly above 90% 98 95 94 91 92 for retentions; and consistently above 25% for new business 74 • Win rates remaining robust even as pipeline has 64 grown to repeat
Slide 35: FY25 contract awards of £5.5bn – delivering a 114% book-to-bill
FY25 contract awards of £5.5bn – delivering a 114% book-to-bill Awards, £bn • 2025 Full Year awards of ~£5.5bn grew by ~13% vs 2024 (£4.9bn) 5.5 * 5.5 5.4 • Second highest order intake in a decade with a 4.9 4.6 114% book -to-bill 4.2 • Over 60% of order intake in Defence 3.1 • UK&E contributed 68%
Slide 36: Our strong order book provides a high level of visibility
Our strong order book provides a high level of visibility Orderbook, £bn • The order book increased to £14.6bn at the end of June 2026 (December 2025: £14.5bn). 14.8 14.6 14.1 14.5 13.5 13.7 13.6 13.3 • Our order book definition gives our assessment of the future revenue expected to be recognised fr
Slide 37: ROIC & EPS over time
ROIC & EPS over time ROIC, % EPS, p 16.67p 16.93 p 26.2% 25.9% 15.36p 23.7% 13.92 p 20.6% 21.4% 12.56 p 19.1% 15.4% 8.43 p 6.16 p 2019 2020 2021 2022 2023 2024 2025 2025 2019 2020 2021 2022 2023 2024 2025 37
Slide 38: Capital returns over time
Capital returns over time Share buyback & dividends, £m 178 • 2026 buyback increased from £75m to £150m 124 120 • Takes total capital allocated to dividends 140 and share buybacks to around £760m 93 since 2021 90 90 50 • Strong balance sheet provides flexibility 47 for capital allocation and shareho
Slide 39: Half year 2026 highlights
serco Half year 2026 highlights
Slide 40: Key messages
Key messages Strong financial performance, further margin progression Supporting increased buyback from £75m to £150m for the year Further delivery across strategic priorities supports unchanged 2026 guidance Positive indicators across our pillars of Growth, Competitiveness & Operational Excellence
Slide 41: Strong first-half performance, further margin progression
Strong first-half performance, further margin progression Revenue Underlying operating profit Free cash flow Order intake £2.5bn £157m £65m £2.5bn 4% ↑ at constant currency Delivering 6.2% margin 74% cash conversion ~100% book -to-bill 41
Slide 42: HY overview: momentum across our execution priorities
HY overview: momentum across our execution priorities Growth Competitiveness Operational excellence Retention win rate Key contract mobilisations – Group -wide simplification 95% ↑ 3% pts incl. Royal Navy support, US programme – 5 to 3 sectors vs FY25 Air Force training, Solutions+ Excellent ASPAC C
Slide 43: Appendix
Appendix
Slide 44: Forward-looking statements
Forward-looking statements This announcement contains statements which are, or may be deemed to be, “forward looking statements” which are prospective in nature . All statements other than statements of historical fact are forward -looking statements . Generally, words such as expect”, “anticipate”,
Slide 45: Notes and definitions
Appendix 1 Notes and definitions Revenue is as defined under IFRS, which excludes Serco’s share of revenue of its joint ventures and associates. In prior peri ods where relevant, revenue including that from any discontinued operations has been shown for consistency with previous guidance and disclos
Slide 46: Revenue divisional analysis
Appendix 2 Revenue divisional analysis Revenue - growth composition HY26 vs HY25 HY25 HY26 Reported Acquisition/ Reported Constant £m Organic FX TOTAL Currency (Disposal) Currency Currency UK&E 1,253.5 7% —% 1% 8% 1,358.6 1,345.3 North America 720.8 —% 12% (4%) 8% 774.9 808.0 Asia Pacific 355.3 (13%
Slide 47: Underlying operating profit (UOP) divisional analysis
Appendix 3 Underlying operating profit (UOP) divisional analysis Underlying operating profit and margin – HY26 vs. HY25 HY26 HY25 Change FY25 Reported Constant Reported Reported Reported Constant Constant Reported Reported £m Currency Currency Margin Currency Margin Currency Currency Currency Margin
Slide 48: Income statement – EPS and DPS
Appendix 4 Income statement – EPS and DPS £m FY25 FY24 HY26 Underlying operating profit (UOP) 271.6 273.5 156.7 Net finance costs (NFC) (44.8) (33.1) (23.3) Underlying PBT 226.8 240.4 133.4 Tax on UOP and NFC (51.6) (60.4) (30.7) Underlying PAT 175.2 180.0 102.7 Profit on disposal of subsidiary 4.7
Slide 49: Exceptional items
Appendix 5 Exceptional items £m FY25 FY24 HY26 Exceptional items: Goodwill impairment (Asia Pacific) - (114.5) - Exceptional items - (114.5) - Tax on exceptional items - - - Total exceptional items, net of tax - (114.5) - Memo: - Cash flow on exceptional items - - 49
Slide 50: Free Cash Flow and Trading Cash Flow
Appendix 6 Free Cash Flow and Trading Cash Flow £m FY25 FY24 HY26 Underlying operating profit (UOP) 271.6 273.5 156.7 Share of profit of joint ventures and associates (28.8) (22.8) (16.3) Depreciation, amortisation and impairment of owned assets 27.4 25.1 13.8 Depreciation, amortisation and impairme
Slide 51: Net debt and leverage
Appendix 7 Net debt and leverage £m FY25 FY24 HY26 Free cash flow 219.3 227.5 65.0 Net (acquisition) / disposal of subsidiaries and operations (250.7) (20.8) 1.0 Disposal related costs (2.3) - - Dividends paid to shareholders (43.3) (38.4) (30.3) Purchase of own shares (50.3) (141.3) (58.1) Capitali
Slide 52: Focus on three sectors across four regions
Appendix 8 Focus on three sectors across four regions FY25 revenue mix, including share of JV&As * UK & North Asia Middle Serco £m Sector Europe America Pacific East Total Defence 798 1,084 183 32 £2,097m 39% Justice & - 1,400 189 - £1,589m 29% Immigration Citizen 871 379 283 173 £1,706 m 32 % Servi
Slide 53: Cash flow breakdown 1 and breakdown 2
Appendix 9 Cash flow breakdown 1 and breakdown 2 £m FY25 FY24 HY26 Breakdown 1 – depreciation, amortisation and impairment Depreciation (excluding lease assets) 18.5 17.2 8.9 Amortisation (non -acquisition) 8.8 8.3 4.9 Depreciation and amortisation 27.3 25.5 13.8 Impairment of PPE (excluding lease a
Slide 54: Leverage covenant calculation
Appendix 10 Leverage covenant calculation £m FY25 FY24 HY26 Underlying operating profit (UOP) 271.6 273.5 282.5 Exclude: share of joint venture and associate post -tax profits (28.8) (22.8) (33.4) Exclude: foreign exchange credit on investing and financing arrangements (1.2) (2.1) (2.7) Add -back: n
Slide 55: Interest cover covenant calculation
Appendix 11 Interest cover covenant calculation £m FY25 FY24 HY26 Net finance costs (44.8) (33.1) (48.7) Other covenant adjustments to net finance costs 22.8 19.6 22.2 Exclude: foreign exchange credit on investing and financing arrangements 1.2 2.1 2.7 Exclude: net interest receivable on retirement
Slide 56: Balance sheet summary
Appendix 12 Balance sheet summary £m FY25 FY24 HY26 Goodwill 929.3 826.2 940.8 Other intangible assets (excluding leased assets) 162.2 101.4 149.5 Property, plant and equipment (excluding leased assets) 56.2 56.8 59.0 Contract assets, trade and other receivables 669.3 657.8 759.3 Inventories 20.0 24
Slide 57: Return on Invested Capital (ROIC)
Appendix 13 Return on Invested Capital (ROIC) £m FY25 FY24 HY26 Invested capital assets 1,871.1 1,691.4 1,966.0 Invested capital liabilities (752.0) (714.7) (825.3) Invested Capital (IC) 1,119.1 976.7 1,140.7 Average IC (two -point) 1,047.9 1,043.8 1,149.0 Underlying operating profit for rolling 12
Slide 58: Pension assets mix and IAS 19 valuation
Appendix 14 Pension assets mix and IAS 19 valuation £m FY25 FY24 HY26 Fair value of scheme assets - SPLAS Buy and maintain credit - 17.8 - Short -dated credit 36.5 31.9 37.3 Asset backed securities 60.2 38.0 69.6 LDIs 188.4 181.7 177.4 Private debt 136.9 143.5 131.7 Amounts held by insurance compani
Slide 59: Currency rates
Appendix 15 Currency rates Rate for FY26e Average rates Closing rates Assumed 30 Jun 31 Dec 30 Jun 31 Dec 30 Jun 31 Dec HY26 FY25 HY25 FY24 HY24 average 2026 2025 2025 2024 2024 2023 £:US$ 1.34 1.35 1.31 1.29 1.28 1.27 1.32 1.35 1.37 1.25 1.28 1.27 £:Aus$ 1.90 1.93 2.05 2.05 1.93 1.92 1.92 2.01 2.10
Slide 60: Tax
Appendix 16 Tax • HY26 underlying tax of £30.7m , on underlying profit before tax of £133.4m - effective tax rate (ETR) of 23.0% — The rate is below the UK statutory rate principally due to the impact of post -tax profits of joint ventures being reported in Se rco group pre -tax results. • Expect lo
Slide 61: Net debt trend analysis
Appendix 17 Net debt trend analysis The trend of net debt in HY 2026 has followed a normal pattern compared to HY25, which was significantly impacted by the acquisition of MT&S. The range of daily net debt around the average of ~£240m for the half year was within a range of +/ - £100m, which is cons
Slide 62: American Depositary Receipt (ADR) program
Appendix 18 American Depositary Receipt (ADR) program Serco Group has a sponsored Level 1 ADR program, for which Deutsche Bank act as the depositary bank and custodian Ticker: SCGPY Exchange: OTC CUSIP: 81748L209 For assistance with converting Ordinary Shares US ISIN: US81748L2097 into ADRs (or vice
Slide 63: Sector comparatives - 2024
Appendix 1 9 Sector comparatives - 2024 2024 Half Year Six months to 30 June 2024 Six months to 30 June 2024 Old Basis New Basis UK & Europe North America Asia Pacific Middle East Total UK & Europe North America Asia Pacific Middle East Total £m £m £m £m £m £m £m £m £m £m Key Sectors Key Sectors Def
Slide 64: Sector comparatives - 2025
Appendix 20 Sector comparatives - 2025 2025 Half Year Six months to 30 June 2025 Six months to 30 June 2025 Old Basis New Basis UK & Europe North America Asia Pacific Middle East Total UK & Europe North America Asia Pacific Middle East Total £m £m £m £m £m £m £m £m £m £m Key Sectors Key Sectors Defe
Slide 65: serco.com
serco better