Norcros Plc · LSE:NXR
Norcros — Investor Day (May 2024)
79 slides from Norcros's investor day presentation, May 2024
Slide 1: Capital Markets Event May 2024
NORCROS CAPITAL MARKETS EVENT May 2024
Slide 2: Welcome
STEVE GOOD Chair WELCOME NORCROS PLC CAPITAL MARKETS EVENT 2
Slide 3: Market leader in design-led, sustainable bathroom and kitchen products
THOMAS WILLCOCKS Chief Executive Officer MARKET LEADER IN DESIGN-LED, SUSTAINABLE BATHROOM AND KITCHEN PRODUCTS NORCROS PLC CAPITAL MARKETS EVENT 3
Slide 4: Presenters
PRESENTERS Thomas Willcocks James Eyre Helene Roberts Chief Executive Officer Chief Financial Officer Managing Director, Norcros UK & Ireland Charlie Soden John Mortimer David Tutton Managing Director, Managing Director, Managing Director, Merlyn Grant Westfield Triton NORCROS PLC CAPITAL MARKETS EV
Slide 5: Organic and M&A consolidation strategy has delivered...
ORGANIC AND M&A CONSOLIDATION STRATEGY HAS DELIVERED... NORCROS PLC CAPITAL MARKETS EVENT 5
Slide 6: The UK & Ireland's number 1 bathroom products group
THE UK & IRELAND’S NUMBER 1 BATHROOM PRODUCTS GROUP NORCROS PLC CAPITAL MARKETS EVENT 6
Slide 7: New medium-term targets
NEW MEDIUM-TERM TARGETS ORGANIC GROWTH OPERATING MARGIN CASH CONVERSION 2-3% pa 15% >90% above market over medium term SCIENCE-BASED ROCE* CARBON EMISSIONS TARGETS >20% 2028** *ROCE is Underlying operating profit on a pre-IFRS 16 basis expressed as a percentage of the average of opening and closing
Slide 8: Today
TODAY 01 02 03 NORCROS THE GROWTH TODAY OPPORTUNITY PLAN NORCROS PLC CAPITAL MARKETS EVENT 8
Slide 9: Norcros Today
01 02 03 EVOLUTION AND GROWTH OF NORCROS NORCROS TODAY THE OPPORTUNITY GROWTH PLAN 01 NORCROS TODAY NORCROS PLC CAPITAL MARKETS EVENT 9
Slide 10: What we are
Norcros Today 01 02 03 WHAT WE ARE NORCROS TODAY THE OPPORTUNITY GROWTH PLAN UK’S NO.1 BATHROOM PRODUCTS Market leading Mid-premium GROUP bathroom & kitchen positioning products brands Differentiated by Capital product design & light & cash customer service generative NORCROS PLC CAPITAL MARKETS EVE
Slide 11: What we are not and will not become
Norcros Today 01 02 03 WHAT WE ARE NOT AND WILL NOT BECOME NORCROS TODAY THE OPPORTUNITY GROWTH PLAN Capital intense Distributor manufacturer Heavy-side building Economy, products supplier low-margin supplier NORCROS PLC CAPITAL MARKETS EVENT 11
Slide 12: A balanced portfolio
Norcros Today 01 02 03 A BALANCED PORTFOLIO NORCROS TODAY THE OPPORTUNITY GROWTH PLAN 31% South Africa a rf ic hA Revenue Sout split by Regional brand focus UK 69% UK excl. Johnson Tiles NORCROS PLC CAPITAL MARKETS EVENT 12
Slide 13: The sweet spot – mid-premium positioning (UK)
Norcros Today 01 02 03 THE SWEET SPOT – MID-PREMIUM POSITIONING (UK) NORCROS TODAY THE OPPORTUNITY GROWTH PLAN Focused on the UK bathroom products market more resilient mid- RMI/New Build/Commercial Share1 Quality/Price Point1 premium market segments 7% 29% 30% Commercial Premium RMI + Economy New B
Slide 14: Positioning: strong customer relationships
Norcros Today 01 02 01 03 02 04 03 POSITIONING: STRONG CUSTOMER RELATIONSHIPS NORCROS NORCROS TODAY TODAY NORCROS THE THE OPPORTUNITY TODAY OPPORTUNITY GROWTH THE GROWTH OPPORTUNITY PLAN PLAN NORCROS GROWTH NORCROS TOMORROW PLAN TOMORROW (without NA & Johnson Tiles) RELATIONSHIPS(UK & IRELAND) Culti
Slide 15: Our successful and scalable platform
Norcros Today 01 02 03 OUR SUCCESSFUL AND SCALABLE PLATFORM NORCROS TODAY THE OPPORTUNITY GROWTH PLAN WE ARE READY FOR OUR NEXT PHASE OF GROWTH Track record Market Diversified Differentiated of M&A and leading products and by design and organic growth brands channels customer service NORCROS PLC CAP
Slide 16: The Opportunity
01 02 03 EVOLUTION AND GROWTH OF NORCROS NORCROS TODAY THE OPPORTUNITY GROWTH PLAN 02 THE OPPORTUNITY NORCROS PLC CAPITAL MARKETS EVENT 16
Slide 17: The Opportunity
01 02 03 THE OPPORTUNITY NORCROS TODAY THE OPPORTUNITY GROWTH PLAN SIGNIFICANT OPPORTUNITY FOR Unlocking value through strategic growth ORGANIC GROWTH, M&A AND MARGIN ENHANCEMENT LARGE & CHANGING BENEFITS FRAGMENTED MARKETS: WORLD: OF SCALE: Organic & M&A Sustainability Modernisation, opportunities
Slide 18: Large and fragmented markets: core addressable market
The Opportunity 01 02 03 LARGE AND FRAGMENTED MARKETS NORCROS TODAY THE OPPORTUNITY GROWTH PLAN CORE ADDRESSABLE Existing UK market share Existing South Africa market share MARKET (core categories only) Circa 15% Circa 7% Norcros UK Norcros market share South Africa c. £3.5bn (excluding market share
Slide 19: Large and fragmented markets: total addressable market
The Opportunity 01 02 03 LARGE AND FRAGMENTED MARKETS NORCROS TODAY THE OPPORTUNITY GROWTH PLAN DECORATIVE TOTAL ADDRESSABLE Potential product categories (UK) RADIATORS MARKET VENTILATION LIGHTING £60m * £355m * £70m * c. £6bn SANITARY-WARE Total addressable £545m * market in existing geographies PL
Slide 20: Large and fragmented markets: extended addressable market
The Opportunity 01 02 03 LARGE AND FRAGMENTED MARKETS NORCROS TODAY THE OPPORTUNITY GROWTH PLAN EXTENDED ATTRACTIVE GEOGRAPHICAL MARKETS ADDRESSABLE MARKET Current Key export Key markets markets segments West Europe France, Italy, £5.3bn Spain and Portugal >£10bn DACH Germany, Austria £5.2bn Extende
Slide 21: Norcros Growth Plan
01 02 03 NORCROS NORCROS TODAY THE OPPORTUNITY GROWTH PLAN 03 GROWTH PLAN NORCROS PLC CAPITAL MARKETS EVENT 21
Slide 22: Evolution and accelerated growth of Norcros
Growth Plan 01 02 03 EVOLUTION AND ACCELERATED NORCROS TODAY THE OPPORTUNITY GROWTH PLAN GROWTH OF NORCROS BUILDING ON What will remain the same... WHAT MAKES US Mid-premium, bathroom GREAT TODAY & kitchens M&A engine driving scale Focus on design, sourcing and customer service Entrepreneurial cultu
Slide 23: Evolution and accelerated growth of Norcros
Growth Plan 01 02 03 EVOLUTION AND ACCELERATED NORCROS TODAY THE OPPORTUNITY GROWTH PLAN GROWTH OF NORCROS BUILDING ON What will remain the same... What will evolve WHAT MAKES US Mid-premium, bathroom Scale-based growth GREAT TODAY & kitchens accelerators STRONG SCALE- M&A engine driving scale Capit
Slide 24: Norcros strategy
Growth Plan 01 02 03 NORCROS STRATEGY NORCROS TODAY THE OPPORTUNITY GROWTH PLAN CRAFTING DESIGN-LED SUSTAINABLE BATHROOM AND KITCHEN PRODUCTS NORCROS OBJECTIVES Renowned for Inclusive and Scale with A POWERFUL design and sustainability Leading, digitally enabled service growth-focused culture market
Slide 25: Norcros strategy
Growth Plan 01 02 03 NORCROS STRATEGY NORCROS TODAY THE OPPORTUNITY GROWTH PLAN CRAFTING DESIGN-LED SUSTAINABLE BATHROOM AND KITCHEN PRODUCTS NORCROS OBJECTIVES Renowned for Inclusive and Scale with design and Leading, digitally growth-focused market-leading sustainability enabled service culture re
Slide 26: M&A
Growth Plan 01 02 03 M&A NORCROS TODAY THE OPPORTUNITY GROWTH PLAN CRAFTING DESIGN-LED SUSTAINABLE BATHROOM AND KITCHEN PRODUCTS NORCROS OBJECTIVES Renowned for Inclusive and Scale with design and Leading, digitally growth-focused market-leading sustainability enabled service culture returns STRATEG
Slide 27: M&A: well-developed strategically aligned acquisition pipeline
Growth Plan 01 02 03 M&A NORCROS TODAY THE OPPORTUNITY GROWTH PLAN M&A Divestments Consolidate large and Strategic alignment fragmented markets Active approach Targeted, consistent approach Norcros Adhesives 2023 to managing and and earnings accretive developing a high growth and low capital intensi
Slide 28: M&A: timeline of acquisitions
Growth Plan 01 02 03 M&A NORCROS TODAY THE OPPORTUNITY GROWTH PLAN Timeline of acquisitions 2013 2015 2016 2017 2019 2022 2013 2015 2016 2017 2019 2022 £m £m 500 500 COVID £441.0m effect £441.0m £396.3m c. £390m* 400 £396.3m c. £390m* 400 £342.0m £331.0m £342.0m £324.2m £331.0m £324.2m £300.1m Succe
Slide 29: Charlie Soden: Accelerating growth within the Norcros Group
01 02 03 NORCROS THE GROWTH TODAY OPPORTUNITY PLAN CHARLIE SODEN Managing Director ACCELERATING GROWTH WITHIN THE NORCROS GROUP NORCROS PLC CAPITAL MARKETS EVENT 29
Slide 30: M&A: Merlyn
Growth Plan 01 02 03 M&A: MERLYN NORCROS TODAY THE OPPORTUNITY GROWTH PLAN We design, engineer and craft the finest showering environments in the world UK’S NO. 1 SHOWER ENCLOSURE BRAND NORCROS PLC CAPITAL MARKETS EVENT 30
Slide 31: Merlyn – acquired by Norcros in 2017
Growth Plan 01 02 03 MERLYN – ACQUIRED BY NORCROS IN 2017 NORCROS TODAY THE OPPORTUNITY GROWTH PLAN Culture Performance The perfect fit Synergies Growth NORCROS PLC CAPITAL MARKETS EVENT 31
Slide 32: M&A: Merlyn – how Norcros ownership accelerated growth
Growth Plan 01 02 03 M&A: MERLYN – HOW NORCROS NORCROS TODAY THE OPPORTUNITY GROWTH PLAN OWNERSHIP ACCELERATED GROWTH 2017 2023 Growth drivers Investment in people, NPD and brand £30.7m 1 £57.5m FY17 Revenue FY23 Revenue Cross-selling – intro to housebuilders and new channels (e.g. Barratt Homes & I
Slide 33: M&A: Merlyn integration – growth of Wickes account
Growth Plan 01 02 03 M&A: MERLYN INTEGRATION NORCROS TODAY THE OPPORTUNITY GROWTH PLAN – GROWTH OF WICKES ACCOUNT Extensive Range Eight ranges - 180 SKU’s Quality Products Wickes case study Premium quality products that are tested to a standard far exceeding UKCA Standards • Norcros introduction to
Slide 34: M&A: Merlyn integration – growth of Wickes account (notes)
Growth Plan 01 02 03 M&A: MERLYN INTEGRATION NORCROS TODAY THE OPPORTUNITY GROWTH PLAN – GROWTH OF WICKES ACCOUNT Extensive Range Eight ranges - 180 SKU’s Quality Products Wickes case study Premium quality products that are tested to a standard far exceeding UKCA Standards • Norcros introduction to
Slide 35: M&A: Merlyn doubled in size
Growth Plan 01 02 03 M&A: MERLYN DOUBLED IN SIZE NORCROS TODAY THE OPPORTUNITY GROWTH PLAN The future – growth, efficiencies, collaboration and opportunities for our people NORCROS PLC CAPITAL MARKETS EVENT 35
Slide 36: Target themes for M&A growth
Growth Plan 01 02 03 M&A NORCROS TODAY THE OPPORTUNITY GROWTH PLAN Target themes for M&A growth Fill gaps in the UK New capabilities New markets Strong M&A track Furniture, sanitary-ware Sustainable products Europe/Middle East record and growth accelerator Care/adaptive segment Digital capabilities
Slide 37: Norcros strategy
Growth Plan 01 02 03 NORCROS STRATEGY NORCROS TODAY THE OPPORTUNITY GROWTH PLAN CRAFTING DESIGN-LED SUSTAINABLE BATHROOM AND KITCHEN PRODUCTS NORCROS OBJECTIVES Renowned for Inclusive and Scale with design and Leading, digitally growth-focused market-leading sustainability enabled service culture re
Slide 38: Organic growth
Growth Plan 01 02 03 ORGANIC GROWTH NORCROS TODAY THE OPPORTUNITY GROWTH PLAN CRAFTING DESIGN-LED SUSTAINABLE BATHROOM AND KITCHEN PRODUCTS NORCROS OBJECTIVES Renowned for Inclusive and Scale with design and Leading, digitally growth-focused market-leading sustainability enabled service culture retu
Slide 39: Organic growth: Norcros growth accelerators
Growth Plan 01 02 03 ORGANIC GROWTH NORCROS TODAY THE OPPORTUNITY GROWTH PLAN Norcros Growth Accelerators Accelerating New product development Key account management growth by taking advantage of our Group-wide scale and channels Cross-selling Customer service NORCROS PLC CAPITAL MARKETS EVENT 39
Slide 40: NPD driving organic growth
Growth Plan 01 02 03 NPD DRIVING ORGANIC GROWTH NORCROS TODAY THE OPPORTUNITY GROWTH PLAN New Product Development driving growth and improved margins In-house design Well-developed NPD pipeline Increased focus on sustainability Collaboration on Group ranges NPD Vitality Index: 25% NORCROS PLC CAPITA
Slide 41: Organic growth: cross-selling
Growth Plan 01 02 03 ORGANIC GROWTH: CROSS-SELLING NORCROS TODAY THE OPPORTUNITY GROWTH PLAN CLEAR OPPORTUNITIES FOR FURTHER CROSS-SELLING IN UK TOP 20 Customer 20 Customer 10 Customer 14 Customer 16 Customer 19 Customer 18 Customer 15 Customer 13 Customer 12 Customer 17 Customer 11 Customer 4 Custo
Slide 42: John Mortimer: Driving organic growth through NPD and cross-selling
01 02 03 NORCROS THE GROWTH TODAY OPPORTUNITY PLAN JOHN MORTIMER Managing Director DRIVING ORGANIC GROWTH THROUGH NPD AND CROSS-SELLING NORCROS PLC CAPITAL MARKETS EVENT 42
Slide 43: Organic growth: waterproof wall panels
Growth Plan 01 02 03 ORGANIC GROWTH NORCROS TODAY THE OPPORTUNITY GROWTH PLAN High quality, rapid installation and sustainable alternative to tiles UK’S NO. 1 FOR High margin, strong cash flow and capital light WATERPROOF WALL PANELS NORCROS PLC CAPITAL MARKETS EVENT 43
Slide 44: Organic growth: Tile Effect revenue
Growth Plan 01 02 03 ORGANIC GROWTH NORCROS TODAY THE OPPORTUNITY GROWTH PLAN Tile Effect revenue (cumulative) £m 7 6.25 6 4.97 5 New Product 4 3.7 Development 3 2.74 driving growth 2 1.86 1.04 1 Tile Effect 0.18 0.44 launched 0 FY23 /Q1 FY23 /Q2 FY23 /Q3 FY23 /Q4 FY24 /Q1 FY24 /Q2 FY24 /Q3 FY24 /Q4
Slide 45: Norcros enables cross-selling growth
Growth Plan 01 02 03 ORGANIC GROWTH NORCROS TODAY THE OPPORTUNITY GROWTH PLAN Norcros enables cross-selling growth Cross-selling is accelerating our growth with new Cross-selling initiatives – customers introductions, referral scheme, Specification Forum Collaboration with Merlyn on logistics enable
Slide 46: Organic growth: future collaboration
Growth Plan 01 02 03 ORGANIC GROWTH NORCROS TODAY THE OPPORTUNITY GROWTH PLAN Future – continued collaboration driving growth and efficiency NORCROS PLC CAPITAL MARKETS EVENT 46
Slide 47: Organic growth: Group growth accelerators
Growth Plan 01 02 03 ORGANIC GROWTH NORCROS TODAY THE OPPORTUNITY GROWTH PLAN Group Growth Accelerators Group Growth Cross-selling programme Specification sales programme Accelerators driving divisional organic market share growth Marketing centre of excellence New product development and cross-Grou
Slide 48: Organic growth
Growth Plan 01 02 03 ORGANIC GROWTH NORCROS TODAY THE OPPORTUNITY GROWTH PLAN CRAFTING DESIGN-LED SUSTAINABLE BATHROOM AND KITCHEN PRODUCTS NORCROS OBJECTIVES Renowned for Inclusive and Scale with design and Leading, digitally growth-focused market-leading sustainability enabled service culture retu
Slide 49: Helene Roberts: Leveraging the benefits of scale
01 02 03 NORCROS THE GROWTH TODAY OPPORTUNITY PLAN HELENE ROBERTS Managing Director, Norcros UK & Ireland LEVERAGING THE BENEFITS OF SCALE NORCROS PLC CAPITAL MARKETS EVENT 49
Slide 50: Operational excellence
Growth Plan 01 02 03 OPERATIONAL EXCELLENCE NORCROS TODAY THE OPPORTUNITY GROWTH PLAN Strengths across our Group 01 Critical mass and scale Strong culture of Scale driving efficiency and 02 collaboration and learning exceptional customer service 03 Driving cost and service synergies 04 Maintaining s
Slide 51: Operational excellence
Growth Plan 01 02 03 OPERATIONAL EXCELLENCE NORCROS TODAY THE OPPORTUNITY GROWTH PLAN Strengths across our Group Increased focus areas 01 Critical mass and scale Lean operations Strong culture of Scale driving efficiency and 02 collaboration and learning Coordinated logistics and warehousing excepti
Slide 52: Operational excellence: warehouse consolidation at Vado
Growth Plan 01 02 03 OPERATIONAL EXCELLENCE NORCROS TODAY THE OPPORTUNITY GROWTH PLAN Warehouse consolidation at Vado (4 sites in 1) Driving efficiency and improvements in customer service NORCROS PLC CAPITAL MARKETS EVENT 52
Slide 53: Operational excellence: freight consolidation
Growth Plan 01 02 03 OPERATIONAL EXCELLENCE NORCROS TODAY THE OPPORTUNITY GROWTH PLAN Freight consolidation Direct engagement with shipping lines Improving More than the sum customer service of the parts: scale driving efficiencies and service Ship more frequently resulting in efficient stock manage
Slide 54: Operational excellence: collaboration across key themes
Growth Plan 01 02 03 OPERATIONAL EXCELLENCE NORCROS TODAY THE OPPORTUNITY GROWTH PLAN Collaboration across 4 key themes Group scale Lean operations Coordinated logistics allows us to and warehousing drive efficiency and improved customer service Supply chain collaboration Data capabilities and effic
Slide 55: ESG driving competitive advantage
Growth Plan 01 02 03 ESG DRIVING COMPETITIVE ADVANTAGE NORCROS TODAY THE OPPORTUNITY GROWTH PLAN CRAFTING DESIGN-LED SUSTAINABLE BATHROOM AND KITCHEN PRODUCTS NORCROS OBJECTIVES Renowned for Inclusive and Scale with design and Leading, digitally growth-focused market-leading sustainability enabled s
Slide 56: ESG driving competitive advantage
Growth Plan 01 02 03 ESG DRIVING COMPETITIVE ADVANTAGE NORCROS TODAY THE OPPORTUNITY GROWTH PLAN We have an established ESG framework People Product Planet A powerful choice Talent NPD SBTi-approved for better living investment targets and Net Zero Transition Plan DE&I Leading sustainable Community
Slide 57: David Tutton: ESG driving competitive advantage
01 02 03 NORCROS THE GROWTH TODAY OPPORTUNITY PLAN DAVID TUTTON Managing Director ESG DRIVING COMPETITIVE ADVANTAGE NORCROS PLC CAPITAL MARKETS EVENT 57
Slide 58: ESG driving competitive advantage
Growth Plan 01 02 03 ESG DRIVING COMPETITIVE ADVANTAGE NORCROS TODAY THE OPPORTUNITY GROWTH PLAN Inspiring everyone Design, engineering, to use water and customer service energy efficiently and ESG core and enjoyably capabilities 54% 64% share of UK electric sales are shower showers market replaceme
Slide 59: Triton: our responsibility to address the sustainability challenge
Growth Plan 01 02 03 ESG DRIVING COMPETITIVE ADVANTAGE NORCROS TODAY THE OPPORTUNITY GROWTH PLAN Triton: Our responsibility to address the sustainability challenge Inspiring everyone to Consumer Regulatory tailwinds shower sustainably, demand e.g. Future Homes because every drop Standard makes a dif
Slide 60: Triton: ESG is at the heart of our strategy
Growth Plan 01 02 03 ESG DRIVING COMPETITIVE ADVANTAGE NORCROS TODAY THE OPPORTUNITY GROWTH PLAN Triton: ESG is at the heart of our strategy Triton is the leader People Product Planet in sustainable Be a safe, engaged and Develop high-performance, Minimising our environmental empowered team, connect
Slide 61: Housebuilder Product Award Winner 2024 for ENVi
Growth Plan 01 02 03 ESG DRIVING COMPETITIVE ADVANTAGE NORCROS TODAY THE OPPORTUNITY GROWTH PLAN Housebuilder Product Award Winner 2024 for ENVi next generation electric shower ® Triton is the leader in sustainable showering NORCROS PLC CAPITAL MARKETS EVENT 61
Slide 62: Triton: environmental benefits of electric showers
Growth Plan 01 02 03 ESG DRIVING COMPETITIVE ADVANTAGE NORCROS TODAY THE OPPORTUNITY GROWTH PLAN Triton: environmental benefits of electric showers 30% lower running costs than a mixer shower* Electric showers enable 68% less water than a mixer shower* environmental and cost benefits for consumers 7
Slide 63: Triton: developing design-led sustainable products
ENVi® -Tri Hub In Growth Plan 01 02 03 ESG DRIVING COMPETITIVE ADVANTAGE NORCROS TODAY THE OPPORTUNITY GROWTH PLAN ENVi IS ® Triton: Developing design-led sustainable products • Flexible installatio A GREAT ENVi® - next generation electric showers • Power Ratings – 9 GROWTH • Inlet connection – OPPO
Slide 64: First name in showers and water heating
Growth Plan 01 02 03 ESG DRIVING COMPETITIVE ADVANTAGE NORCROS TODAY THE OPPORTUNITY GROWTH PLAN We are the first name in showers and water heating, inspiring everyone to use water and energy efficiently and enjoyably NORCROS PLC CAPITAL MARKETS EVENT 64
Slide 65: Key areas of focus
Growth Plan 01 02 03 ESG DRIVING COMPETITIVE ADVANTAGE NORCROS TODAY THE OPPORTUNITY GROWTH PLAN Key areas of focus People Product Planet Key enablers Talent development NPD programme Net Zero Transition Plan that drive our competitive advantage and growth DE&I Sustainable products Supply chain prog
Slide 66: James Eyre: Financial framework
JAMES EYRE Chief Financial Officer FINANCIAL FRAMEWORK NORCROS PLC CAPITAL MARKETS EVENT 66
Slide 67: A strong track record of performance
Growth Plan 01 02 03 A STRONG TRACK RECORD OF PERFORMANCE NORCROS TODAY THE OPPORTUNITY GROWTH PLAN REVENUE (£m) £m 500 UNDERLYING £m 50 47.3 441 OPERATING PROFIT c.42.7 41.8 400 396 c.392 (£m) 40 UK 331 342 324 UK 34.4 32.3 34.0 300 South Africa 300 271 South Africa 30 27.4 236 23.8 219 222 21.3 Or
Slide 68: KPIs and targets
Growth Plan 01 02 03 KPIS AND TARGETS NORCROS TODAY THE OPPORTUNITY GROWTH PLAN Strategic pillars Key targets 2-3% pa 01 M&A Organic growth above market 15% Operating Margin over medium 02 term Grow ahead Organic Growth of market with Cash conversion >90% 15% operating margin over medium term 03 Ope
Slide 69: Organic margin enhancement opportunity
Growth Plan 01 02 03 ORGANIC MARGIN ENHANCEMENT OPPORTUNITY NORCROS TODAY THE OPPORTUNITY GROWTH PLAN Key Drivers ROS OPERATING MARGIN PROGRESSION D C A Successful exit of Johnson Tiles UK 15% B ROS OPERATING MARGIN A c. 1.0% B Operational excellence – scale- based efficiencies Focus on driving 44 1
Slide 70: Driving shareholder returns
Growth Plan 01 02 03 DRIVING SHAREHOLDER RETURNS NORCROS TODAY THE OPPORTUNITY GROWTH PLAN Growth in free cash flow Capital allocation Outcomes Organic growth, ROCE* Organic growth 2-3% pa operational above market excellence and ESG 20%+ Investment in: • innovation • customer service Investing in ou
Slide 71: A compelling investment case
EVOLUTION AND GROWTH OF OUR GROUP A COMPELLING INVESTMENT CASE NORCROS PLC CAPITAL MARKETS EVENT 71
Slide 72: Norcros investment case
NORCROS INVESTMENT CASE NO. 1 01 02 BATHROOM MARKET LEADING BRANDS BENEFITS OF SCALE SUPPLIER Design-led, Driving organic IN THE UK sustainable product growth and development enabling operational Significant excellence opportunity to accelerate organic 03 04 and M&A growth RESILIENT MODEL PROVEN TRA
Slide 73: Norcros accelerated growth story
NORCROS ACCELERATED GROWTH STORY MARKET LEADER IN DESIGN-LED, SUSTAINABLE BATHROOM AND KITCHEN PRODUCTS NORCROS PLC CAPITAL MARKETS EVENT 73
Slide 74: Norcros accelerated growth story
NORCROS ACCELERATED GROWTH STORY MARKET LEADER IN DESIGN-LED, SUSTAINABLE Successful and BATHROOM scalable platform AND KITCHEN PRODUCTS • Market leading brands • Diversified products and channels • Design and customer service • M&A and organic track record NORCROS PLC CAPITAL MARKETS EVENT 74
Slide 75: Norcros accelerated growth story
NORCROS ACCELERATED GROWTH STORY MARKET LEADER IN DESIGN-LED, SUSTAINABLE Successful and Significant opportunity BATHROOM scalable platform to develop and grow AND KITCHEN PRODUCTS • Market leading brands • Large, fragmented markets • Diversified products • Sustainability and care and channels • Mod
Slide 76: Norcros accelerated growth story
NORCROS ACCELERATED GROWTH STORY MARKET LEADER IN DESIGN-LED, SUSTAINABLE Successful and Significant opportunity Norcros BATHROOM scalable platform to develop and grow strategy AND KITCHEN PRODUCTS • Market leading brands • Large, fragmented markets • M&A • Diversified products • Sustainability and
Slide 77: Norcros accelerated growth story
NORCROS ACCELERATED GROWTH STORY MARKET LEADER IN DESIGN-LED, SUSTAINABLE Successful and Significant opportunity Norcros BATHROOM scalable platform to develop and grow strategy AND KITCHEN PRODUCTS • Market leading brands • Large, fragmented markets • M&A • Diversified products • Sustainability and
Slide 78: Q&A
NORCROS Q&A Capital Markets Presentation NORCROS PLC CAPITAL MARKETS EVENT 78
Slide 79: Cautionary statement
CAUTIONARY STATEMENT Certain statements made in this presentation are forward-looking statements. Such statements are based on current expectations and are subject to a number of risks and uncertainties that could cause actual events or results to differ materially from those expressed or implied by