Keller Regulatory News (KLR)

Keller Group plc19 March 2015 Keller Group plc ("the Company") - Annual Report 2014 In accordance with Listing Rule 9.6.1, copies of the following documents havebeen submitted to the National Storage Mechanism: * Annual Report and Accounts for the year ended 31 December 2014 (the `Annual Report 2014') * The notice of annual general meeting 2015 * Form of proxy for the annual general meeting These documents will shortly be available for inspection at the NationalStorage Mechanism at www.hemscott.com/nsm.do. The Annual Report 2014 is also available on the Company's website atwww.keller.co.uk. Hard copies of all the documents have been sent toshareholders. The annual general meeting will be held at 11.00am on Thursday 14 May 2015 atthe offices of Investec, 2 Gresham Street, London, EC2V 7QP. In accordance with DTR 6.3.5, this announcement contains information in theattached Appendix of the principal risk factors, the directors' responsibilitystatement and a note to the accounts on related party transactions. Thisinformation has been extracted in full unedited text from the Annual Report2014. References to page numbers and notes in the Appendix refer to those inthe Annual Report 2014. A condensed set of financial statements was appendedto Keller Group plc's preliminary results announcement issued on 2 March 2015. For further information please contact: Kerry PorrittCompany Secretary Appendix Unedited extract from Annual Report 2014 Principal risks and uncertainties Risk Description Controls and KPIs mitigation Market cycles Whilst our business Strategy of (A) Revenue growth will always be geographic compared withThe Group's broad subject to economic diversification: market growthbase helps to cycles, market riskmitigate against is reduced by the * operations in Definition andthe risk of diversity of our over 40 method ofdownturn in our markets, both in countries calculationmarkets terms of geography and market segment. * Broad customer Year-on-year sales base. growth (including It is also partially acquisitions) in offset by * Services used local currency opportunities for across all compared with consolidation in our industry growth in the total highly fragmented segments: regional markets. Typically, infrastructure, construction even where we are industrial, market. the clear leader, we commercial, still have a residential and relatively small environmental. share of the market. Our ability to exploit these opportunities through bolt-on acquisitions is reflected in our track record of growing sales, and doing so profitably, across market cycles. Tendering and It is in the nature * Risk Management (B) Operatingmanagement of our business that Framework marginof contracts we continually defines Minimum assess and manage Standards in the Definition andProject risk is technical, and other control of method ofmanaged operational, risks. project risk. calculationthroughout thelife of a project * Risk-based Operating profitfrom the tender approval before exceptionaltendering stage process, with items expressed asto completion clear a percentage of delegations of revenue. authority. * Independent review of tenders. * Training for staff in the typical risk issues they may face when tendering for jobs, negotiating contracts and executing work. * Legal review of unusual or onerous contract terms. * Project staff selected on the basis of their skills, experience. * Establishment of `centres of excellence'. * Periodic reviews of poorly performing contracts to establish lessons learned with the results communicated to all relevant staff. Expansion We recognise the * Moving into new (C) Return on net risks associated geographic operating assetsOur long-term with acquisitions markets oftengrowth track and expanding into involves Definition andrecord is built new regions and aim following method ofon a combination to manage these to customers with calculationof organic growth acceptable whom we haveand acquisitions levels. previously Operating profit worked. before exceptional These include items expressed as various country * We deploy a percentage of risks, including the trusted and average net challenges of experienced operating assets operating within personnel to (including goodwill different business establish and acquired through and safety cultures. grow our acquisitions). business in new When considering an regions. `Net operating acquisition, we try assets' excludes to get to know a * Robust operating net debt, tax target company, rules, including balances, deferred often working in our Think Safe consideration and joint venture, to framework and net defined benefit understand the Code of Conduct, pension operational and apply wherever liabilities. cultural differences in the world we and potential are working. synergies. * Cross-border support and sharing of expertise support the transfer of technologies. * Acquisition targets are usually well known to Keller. * We have thorough due diligence processes, mostly undertaken by our own management. * Individual integration plans reflect the unique character of each acquisition. Safety Keller is made up of * Think Safe (D) Accident businesses of initiative Frequency RateThe construction varying sizes rolled out (`AFR')industry poses operating around the across Group insignificant world, often in 2010 - a refresh Definition andsafety challenging of policies and method ofchallenges, but environments. guidance due to calculationwe do not view take place ininjuries as being It is essential 2015 Accident frequencyinevitable that, as we continue per 100,000 man to grow and move * Group HSE hours. into new regions, we Committee can be sure that our monitors safety Lost time injuries approach to safety programmes, sets are calculated as is equally rigorous, targets for any incident over no matter improvements and one day. whereabouts in the ensures lessons world, or on which learned across projects, we are the Group where working. appropriate. * Group HSE Director continues to drive improvement in safety standards and attitudes supported by regional HSE representatives in the divisions. * All divisions complete thorough self assessments annually of their safety performance and culture, which are used as a basis for developing safety improvement plans. People The risk of losing, We aim to be a (E) Staff turnover or not being responsible employer rateThe accumulation able to attract, for whom ourof knowledge and good people employees are proud Definition andexperience is is key. to work. method ofessential to calculationhelping our We pride ourselves We provide excellentcustomers to find in having some of training and Managerial,the best the best development professional andsolutions professional and opportunities; technical staff skilled people in experience on leaving in the the industry, who challenging and period, other than are motivated by our high-profile through redundancy culture and the projects; or normal opportunities for opportunities for retirement, career growth. international career expressed as a growth; and good percentage of engagement and employees in this two-way category. communications. We aim to treat our employees with fairness, dignity and respect. Responsibility statement of the Directors in respect of the annual report andthe financial statements We confirm that to the best of our knowledge: * the financial statements, prepared in accordance with the applicable set of accounting standards, give a true and fair view of the assets, liabilities, financial position and profit or loss of the Company and the undertakings included in the consolidation as a whole; and * the Directors' report, including content contained by reference, includes a fair review of the development and performance of the business and the position of the Company and the undertakings included in the consolidation taken as a whole, together with a description of the principal risks and uncertainties that they face. The Board confirms that the Annual Report and Accounts, taken as a whole, isfair, balanced and understandable and provides the information necessary forshareholders to assess the performance, strategy and business model of theCompany. 26 Related party transactions Transactions between the parent, its subsidiaries and joint operations, whichare related parties, have been eliminated on consolidation. The remuneration of the Directors, who are the key management personnel andrelated parties of the Group, is set out in note 6 (extract below). 2014 2013 £m £m Short-term employee benefits 2.0 3.4 Post-employment benefits 0.1 0.1 Share-based payments 0.9 1.0 3.0 4.5