Ferguson Enterprises Inc. · NYSE:FERG
Ferguson Enterprises — Baird Global Industrial Conference 2020
11 slides from Ferguson Enterprises's conference presentation, Nov 11, 2020
Slide 1: Ferguson plc Baird Global Industrial Conference
Ferguson plc Baird Global Industrial Conference Kevin Murphy, Group CEO
Slide 2: Ferguson is a leading value added distributor of plumbing and heating products
Baird Industrial Conference Ferguson is a leading value added distributor of plumbing and heating products Geographic presence USA key segments and end markets Ongoing revenue (+2.0%) Ongoing revenue* Revenue by customer group $19,940m Canada 5% Facilities Fire and Supply, 5% Fabrication, eBusiness,
Slide 3: Our specialist products and services are used in almost every stage of building and infrastructure development
Baird Industrial Conference Our specialist products and services are used in almost every stage of building and infrastructure development Commercial Facilities supply Provides commercial contractors with Provides products, services and products and services including solutions to enable reliable bi
Slide 4: USA: a diversified but connected business with attractive market structure
Baird Industrial Conference USA: a diversified but connected business with attractive market structure #3 #6 30 $50bn #3 $90bn 25 #1 #2 20 #4 Market size ($bn) 15 #1 #1 5 5 3 10 5 4 Home Depot 5 4 Amazon 6 Watsco #1 7 MRC HD Supply 18% 25% 6 12% 21% 4% 5% 1% 9% - 22% Residential Trade Residential Co
Slide 5: We connect thousands of suppliers and customers with a unique business model
Baird Industrial Conference We connect thousands of suppliers and customers with a unique business model Key resources Distribute Sell Source and relationships How we fulfil How our customers buy orders Our people 2% through central 39,000 50% account management Suppliers Delivered from and call cen
Slide 6: …with supportive structural characteristics
Baird Industrial Conference …with supportive structural characteristics RMI revenue accounts for 59% of total revenue 11% 7% Highly fragmented industry 34% Organic sales growth culture 58% Bolt-on acquisition opportunities 59% The RMI market now represents Benefits of scale 31% 59% of US revenue Cus
Slide 7: Great growth opportunities: Consistent revenue, gross margin and profit growth
Baird Industrial Conference $19.9bn Great growth opportunities: Consistent revenue, gross margin and profit growth 30.0% $1.6bn $9.1bn 27.5% $0.3bn ‘10 ‘11 ‘12 ‘13 ‘14 ‘15 ‘16 ‘17 ‘18 ‘19 ‘20 Group ongoing revenue Group ongoing gross margin Group ongoing trading profit Ferguson plc 7
Slide 8: Our strategy is delivering – we’re firmly focused on execution
Baird Industrial Conference Strategic update Key strategic themes – ‘How Tomorrow Works’ • Value added distributor • As trusted supplier and partner, we provide innovative products and solutions to make our customers’ projects better • Ensuring scale delivers customer benefits where and when they ne
Slide 9: Strategy: Where we invest
Baird Industrial Conference As trusted advisers, we provide innovative products and solutions to make our customers’ projects better. Strategy Where we invest We will expand our role in the value chain to build durable competitive We will focus on key capabilities that lay the groundwork for advanta
Slide 10: Strategy: Expanding our role in the value chain
Baird Industrial Conference Strategy: Expanding our role in the value chain Ferguson plc 10
Slide 11: Summary: Why invest in Ferguson?
Baird Industrial Conference Summary: Why invest in Ferguson? Great returns Good trading profit margins* Excellent returns on capital** Dependable ordinary dividends* 8.0% 24.9% 208.2c Ongoing underlying trading margin Return on gross capital employed Total ordinary dividend * Figures are for the yea