Black & Veatch International Ltd

Notes to the Financial Statements
for the Year Ended 31 December 2025

Black & Veatch International Ltd (the 'company') is a private company limited by share capital, registered in England and Wales under the Companies Act. The address of the registered office is given on page 1. The nature of the company’s operations and its principal activities are set out in the Directors' Report on page 2.

The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.

Going concern

The directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus they continue to adopt the going concern basis in preparing the annual financial statements.

Statement of compliance

Basis of preparation

Summary of disclosure exemptions

The company meets the definition of a qualifying entity under FRS 102 and has therefore taken advantage of the disclosure exemptions available to it in respect of its separate financial statements. The company is consolidated in the financial statements of its parent, Black & Veatch UK Limited, a company registered in the United Kingdom. Exemptions have been taken in these separate company financial statements in relation to financial instruments, presentation of a cash flow statement, transactions with group entities and remuneration of key management personnel.

Black & Veatch International Ltd

Notes to the Financial Statements
for the Year Ended 31 December 2025 (continued)

Critical judgements and key sources of estimation uncertainties

The preparation of financial statements requires management to make judgements, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets, liabilities, income and expenses. Actual results may differ from these estimates.

Estimates and underlying assumptions are reviewed on a regular basis. Revisions to accounting estimates are recognised in the period in which the estimates are revised and in any future periods affected.

In particular, information about significant areas of estimation uncertainty and critical judgements in applying accounting policies that have the most significant effects on the amounts recognised in the financial statements are set out below:

Contract outcome estimation
Contract outcomes are based on actual costs incurred to date and forecast costs to complete. These costs are based on the directors’ best estimate of the results of these contracts.

There remains a range of possible outcomes of the eventual contract outcome. The final contract outcomes may be materially different and are dependent on future events which include but are not limited to the ability of the company to mitigate known and potential future risk, learning efficiencies achieved and the outcome of any future commercial negotiation in relation to the scope of work provided to the customers concerned as part of a contract variation.

However, based on current plans and available information (after considering valuations by internally qualified engineers and surveyors) the directors of the company believe that the contract outcomes booked in these financial statements represent an appropriate best estimate of the likely outcome (including any losses).

Determining whether intangible assets are impaired requires an estimation of their value in use to the company. The value in use calculation requires the entity to estimate the future cash flows expected to arise from the intangible asset and a suitable discount rate in order to calculate present value.

Revenue recognition
Revenue is recognised to the extent that it is probable that the economic benefits will flow to the company and the revenue can be reliably measured. The following specific recognition criteria must also be met before revenue is recognised:

Rendering of services
Revenue from services rendered is recognised by reference to the stage of completion of the transaction. Revenue from services provided on a short-term or one-off basis is recognised when the service is complete. The
provision of services over a long-term period are treated as construction contracts, and the revenue recognised as set out below.

Construction contracts
Revenue and profit attributable from construction contracts, including long-term service provision contracts, is recognised by reference to the stage of completion of the contract. An expected loss on a contract is recognised
immediately in the income statement.

Forecast Contract Revenues
Forecast contract revenue is recognised on additional work undertaken which is requested by the customer to represent a variation to the original base contract. No revenue is included within the forecast unless it is
contractually due or virtually certain of being received.

Black & Veatch International Ltd

Notes to the Financial Statements
for the Year Ended 31 December 2025 (continued)

Cost to complete

The forecast costs to complete on long term contracts are subject to a range of possible outcomes dependent on factors such as:

- The cost, quantity required and usage of raw materials;

- The number and cost of man-hours;

- The likelihood of contractual risks being incurred and, if incurred, being successfully mitigated.

Overall contract review process

The directors participate and challenge management on their cost assessments as part of monthly contract reviews. The estimated costs to complete at a point in time represent the directors’ best estimate of the likely contract outcome given the facts and circumstances that are known at the time the estimate is undertaken.

Foreign currency transactions and balances

Transactions in foreign currencies are recorded using the rate of exchange ruling at the date of the transaction or, if hedged forward, at the rate of exchange under the related forward currency contract. Monetary assets and liabilities denominated in foreign currencies are translated into sterling at the contractual rate or rates of exchange ruling at the balance sheet date and the gains or losses on translation are included in the profit and loss account.

Taxation

Black & Veatch International Ltd

Notes to the Financial Statements
for the Year Ended 31 December 2025 (continued)

Employee benefits
The company operates a defined contribution pension scheme which is registered under the name of the parent entity, Black & Veatch (UK) Limited. Contributions payable to the pension scheme are charged to profit or loss in the period to which they relate.

Long term contracts
Long-term contracts are included in the profit and loss account by recording revenue and related costs as contract activity progresses. Profit attributable to revenue to date is included where the outcome of the contract can be foreseen with reasonable certainty. Full provision is made for losses on unprofitable contracts.

The amount by which revenue is in excess of payments on account is separately disclosed within receivables as amounts recoverable on contracts. Payments on account received in excess of costs less foreseeable losses are disclosed in payables.

Investments

Centralised cash pooling arrangement

The Group participates in a centralised cash management arrangement (cash pool), under which certain bank accounts are subject to a pooling agreement, either on a physical or notional basis, to optimise liquidity and manage interest effectively across participating entities. Under the terms of the arrangement, individual cash balances of participating entities may be offset by the bank for interest calculation purposes, although legally each entity maintains separate rights and obligations in respect of its own balances. The Group does not offset balances in the financial statements unless a legally enforceable right of set-off exists and the intention is to settle on a net basis, in accordance with Section 2 of FRS 102 - Concepts and Pervasive Principles and paragraph 2.52 (netting of assets and liabilities).

Cash pool balances that represent:

Surplus positions are classified as cash and cash equivalents or amounts receivable from group undertakings, depending on their nature and legal enforceability.

Deficit positions are classified as bank overdrafts or amounts payable to group undertakings, as appropriate.

Interest income and expense arising from the cash pool are recognised in the income statement on an accruals basis, in accordance with the contractual terms of the arrangement. Intercompany interest is recognised within finance income or finance costs, unless capitalised in accordance with the Group’s borrowing cost policy. All intercompany positions arising under the cash pool arrangement are subject to the Group’s normal credit and settlement procedures and are eliminated on consolidation where relevant.

Black & Veatch International Ltd

Notes to the Financial Statements
for the Year Ended 31 December 2025 (continued)

Receivables

Payables

Share capital

Financial instruments

The company only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value.

The analysis of the company's revenue for the year from continuing operations is as follows:

The aggregate payroll costs were as follows:

Black & Veatch International Ltd

Notes to the Financial Statements
for the Year Ended 31 December 2025 (continued)

The average number of employees during the year were as follows:

The directors did not receive any remuneration for services to the company during the year or preceding year. They are remunerated by other group companies.

Tax charged/(credited) in the income statement

The standard rate of UK corporation tax applied to the reported profit before tax for the year is 25% (2024 - 25%).

The difference between the total tax charge shown above and the amount calculated by applying the standard rate of UK corporation tax to the profit before tax is as follows:

The company has unrelieved tax losses of approximately £nil (2024: £40,230) carried forward at 31 December 2025. These unrelieved tax losses are available for utilisation against future trading profits.

Black & Veatch International Ltd

Notes to the Financial Statements
for the Year Ended 31 December 2025 (continued)