Kier : Annual report and accounts

Vital to the UK

 Annual Report and Accounts 2023

Financial highlights

Total Group revenue - including joint ventures1

£3.4bn

2022: £3.3bn

Profit from operations1

£81.5m

2022: £45.1m

Earnings per share1,4

9.5p

2022: 2.9p

Order book

£10.1bn

2022: £9.8bn

Net debt - average3

£(232.1)m

2022: £(216.1)m

Total Group revenue - excluding joint ventures1

£3.4bn

2022: £3.1bn

Adjusted operating profit from operations1,2

£131.5m

2022: £120.5m

Earnings per share before adjusting items1,4

19.2p

2022: 16.8p

Net cash - 30 June3

£64.1m

2022: £2.9m

Strategic report	Financial statements
2	Kier at a glance	158	Independent auditors' report
6	Chairman's statement		to the members of Kier Group plc
8	Chief Executive's review	166 Consolidated income statement
16	Our business model	167	Consolidated statement of
20	Our strategy		comprehensive income
24	Operational review	168 Consolidated statement of changes
32	Our marketplace		in equity
40	Our key performance indicators	169 Consolidated balance sheet
42	Building for a Sustainable World	170 Consolidated statement of cash flows
62	TCFD report	171	Notes to the consolidated
70	Our stakeholders		financial statements
74	How we manage risk	236 Company balance sheet
84	Financial review	237 Company statement of changes
90	Section 172 statement		in equity
91	Non-financial and sustainability	238 Notes to the Company
	information statement		financial statements

Governance	Other information
92	Governance at a glance	242 Financial record
93	Chairman's introduction	243 Glossary of alternative
	to corporate governance report	performance measures
94	Board of Directors
96	Corporate governance

104 Risk Management and Audit Committee report

112 Environmental, Social and Governance Committee report

116	Nomination Committee report
120	Directors' Remuneration report
154	Directors' report
157	Statement of Directors'

1. See consolidated income statement on page 166.
2. See note 5 to the consolidated financial statements.
3. See note 22 to the consolidated financial statements.
4. See note 12 to the consolidated financial statements.

responsibilities

Our purpose is to sustainably deliver infrastructure which is vital to the UK

Strategic report

Corporate governance

Financial statements

Other information

Tackling climate change

Embedding sustainable construction practices into our projects and leading the way in the UK's transition to net zero.

Addressing population growth

Delivering the infrastructure and construction required by the growth of the UK's population.

Easing congested transport

Providing capital work and the maintenance of the UK's road network and supporting additional capacity on the rail network.

Throughout this report we outline our vision, values and our strategy to illustrate how Kier is vital to the UK.

Addressing geographic imbalance

UK-wide geographic coverage serving communities and providing jobs and opportunities across the UK.

Supporting changing consumer trends

Delivering social infrastructure to support changes in the way we live and work.

Unlocking economic growth

Counter-cyclical business delivering projects to connect communities.

More on Our marketplace from page 32

www.kier.co.uk|  Kier Group plc Annual Report and Accounts 2023	1

Kier at a glance

Our vision is to

be the UK's leading infrastructure services and construction company

Kier in numbers:

+21,000km

Of roads maintained

c.47,000

School places delivered for the

Department of Education over 6 years

c.10m

Homes we help to keep powered

646

Apprenticeship opportunities delivered

Our values

Trusted

We deliver what we promise. We act safely and ethically and we care for the environment and the communities in which we work.

Collaborative

We enjoy what we do and work closely with clients and stakeholders to reach innovative solutions.

Focused

We are clear in our approach. We are disciplined and thorough in how we work and deliver for our clients and customers.

2	Kier Group plc Annual Report and Accounts 2023  |  www.kier.co.uk

Our strategy

The Group is focused on the successful delivery of its medium-term targets:

• Revenues of c.£4.0bn-£4.5bn
• Adjusted operating margin of c.3.5%
• Operating profit cash conversion c.90%
• Balance sheet: sustainable net cash position with capacity to invest
• Dividend: Sustainable dividend policy c.3 x earnings cover through the cycle

Kier:

Is focused on government, regulated or blue-chip client base

Operates in business- to-business markets

Contracts through long-term frameworks

Our strategy from page 20

Sustainability

Lives at the heart of our purpose and informs everything we do at Kier

More on sustainability from page 42

Creating value for our stakeholders

Our shareholders

£132.3m

Free cash flow generated

Our people

c.10,000

Employees

Our supply chain

c.69%

Subcontract spend with SMEs

Communities

£487k

Donated to youth homelessness charities throughout the partnership

See Our stakeholders on page 70 for more information on how we engage with them

Strategic report

Corporate governance

Financial statements

Other information

Governance

The Board has continued its focus on the delivery of our strategy and medium-term value creation plan ensuring we promote long-term success and generate value for shareholders and stakeholders.

An overview of our corporate governance structure, policies and practices as well as the key activities undertaken by the Board and its Committees are set out in the Corporate governance report.

More on Governance from page 92

www.kier.co.uk|  Kier Group plc Annual Report and Accounts 2023  |  At a glance	3