Kier Group Plc · LSE:KIE
Kier — Investor Day (June 2025)
32 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 / Key financials
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: Q&A
Q &A E
Slide 31: Capital Markets Day Appendix
Capital Markets Day 3 June 2025 Appendix Macfarlane Place
Slide 32: 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