Executive Chairman’s statement

In last year’s strategic report, I referenced the tougher trading conditions facing the construction industry, which were compounded by the ongoing uncertainties caused by the UK’s protracted exit from the European Union. Little did any of us realise just how tough those challenges were about to get, as the outbreak of the COVID-19 pandemic very quickly gripped the globe, changing the world as we knew it forever.

As I reflect on the year, my overwhelming feeling is one of pride for the tremendous work that my executive team and all my colleagues across Keltbray have done to face the challenges head on, continue to deliver the essential services our customers demand and protect the business for the future. Beyond any financial metrics, it truly has been a year of human accomplishment. I am pleased to report we have delivered a resilient set of results for the full year 2020, with creditable highlights in EBITDA and year-end cash performance. This places us in good shape as we look ahead to 2021 with greater, yet still cautious, optimism. We have also retained cash in the business through a number of cost containment measures, which gives me the confidence that we have the necessary facilities in place to support the growth opportunities identified in our new 5-year strategic plan, entitled ‘Unleashing our Potential’. Our financial and operational strengths stand us in good stead as we look to contribute significantly to the call to ‘build, build, build’ once the pandemic and Brexit uncertainties are behind us. Construction collectively has a generation-defining opportunity to play a full and active role in this regard, through the exciting project opportunities coming to market, to demonstrate innovation, delivery excellence, talent development and the social and environmental value that our work creates. As a champion of the UK Construction industry, through my chairmanship of Build UK, it is particularly pleasing to see the emphasis the UK Government is placing on our industry to lead the

economic recovery through its transformative ‘Build Back Better’ investment programme. We will play our part in the UK’s recovery by focusing on key targets in sectors that align with our business model and approach – energy, transport and defence – where we have a compelling offer and a strong track record of delivery. For these reasons, the Main Board unanimously approved the Group strategic plan to 2025, formulated under the new executive leadership team. It contains clear, unambiguous goals to pursue continual improvement in corporate governance, business development, project delivery and organisational effectiveness. The progress made so far is moving Keltbray further towards its core purpose of redefining the way sustainable development is delivered. We have made significant progress in the year in strengthening our executive ranks and refreshing our corporate governance. We welcomed Darren James as our new Chief Executive Officer and Main Board member during the year, who has made an impressive start navigating the turbulent waters of COVID, formulating and embedding our new strategy with colleagues and key stakeholders, and opening Keltbray up to new business horizons. Phil Wilbraham, former Heathrow Expansion Programme Director joined as a non-executive director and Chair of the Group Risk Committee, following a distinguished senior career with the airport operator. Ashley Muldoon joined Keltbray as a Non-Executive Director of the main Board. Ashley is Chief Operating Officer of Global Switch, and was previously Europe, Middle East and Canada Chief Executive Officer for Multiplex. Both experienced and respected industry figures with fresh perspectives and specific sector expertise, Phil and Ashley will enable the Board to oversee the management of a broader range of risks and opportunities in support of our strategy for growth. Michael O’Hagan and Tim Bowen also joined as members of the Executive Board, bringing extensive industry experience, engineering firepower and strategic business development capability. Mike Snee was promoted to the Executive Board in recognition of his achievements in growing our Energy services business, and the potential we see for Keltbray in this important sector. In summary, these results clearly demonstrate the commitment of our talented workforce, the potential of our customer-centric diversification strategy and the inherent value of our integrated delivery model to respond positively to an increasingly unpredictable world. It is my sad duty to report that since the year-end a colleague in Infrastructure died from injuries sustained working on an energy project in Scotland. Our immediate priority has been to provide the necessary support to close family and colleagues at this very difficult time. I want to close by extending my sincere thanks to all my colleagues who share our purpose and strategic ambitions. It has been particularly rewarding to see the resilience of our people and our partners – investors, suppliers, communities, and of course, our customers – who share our resolve to create sustainable value through the exciting projects we deliver on their behalf. Thank you.

Brendan Kerr

Owner and Executive Chairman