Slide 1: Ibstock PLC Preliminary Results Presentation
Slide 2: Disclaimer
Disclaimer The information contained in this presentation has not been independently verified and this presentation contains various forward-looking statements that reflect management’s current views with respect to future events and financial and operational performance. The words “growing”, “scope
Slide 3: Agenda
Agenda Introduction to the Group—Wayne Sheppard Overview—Wayne Sheppard Financial review—Kevin Sims Operating review and strategic update—Wayne Sheppard Q&A 3
Slide 4: Presenting today
Presenting today Wayne Sheppard – CEO (20 years at Ibstock) Kevin Sims – CFO (29 years at Ibstock) Over 20 years experience at managing ACMA chartered accountant with 30 years director level gained across a broad range of experience within manufacturing businesses businesses within the building
Slide 5: Introduction to the Group
Introduction to the Group Market leadership positions—diversified across regions, products & sales channels United Kingdom United States Revenue (FY15)1 £253m £48m £35m £77m % of group 61% 12% 8% 19% Market UK #1 in clay bricks UK #1 in fencing and lintels Market leader in cast stone A leadi
Slide 6: Introduction to the Group
Introduction to the Group A whole house product range & more Key supplier to the housing sector Complementary product offering Cross-selling opportunities Innovative solutions Opportunity to add new product sectors 2 Significant share of RMI providing cyclical resilience Sales channels (
Slide 7: Agenda
Agenda Introduction to the Group—Wayne Sheppard Overview—Wayne Sheppard Financial review—Kevin Sims Operating review and strategic update—Wayne Sheppard Q&A 7
Slide 8: Overview
Overview Financial Highlights – 12 months to 31st December 2015 Results in line with expectations – strong growth in revenue and profit Group revenue up 11% to £413m Adjusted EBITDA up 65% to £107m Free cash flow generated from operations £69m reduced net debt to £145m (1.4x EBITDA) Final
Slide 9: Agenda
Agenda Introduction to the Group—Wayne Sheppard Overview—Wayne Sheppard Financial review—Kevin Sims Operating review and strategic update—Wayne Sheppard Q&A 9
Slide 10: Presentation of Results
Presentation of Results The Group’s statutory results for the period ended 31st December 2015 reflect: • the incorporation of the Group in November 2014 • the acquisition of the trading businesses from CRH plc in February 2015 and the resulting fair value adjustments Statutory results only inclu
Slide 11: Financial highlights - 12 months to 31st December 2015
Financial highlights - 12 months to 31st December 2015 Revenue £413m 11% Adjusted EBITDA £107m 65% EBITDA Margin % 26% 9 ppt ROCE 20% Cash conversion 86% 9 ppt Net Debt to EBITDA 1.4 Final dividend 4.4p A high return, attractive growth, cash generative business 11
Slide 12: P&L & EPS reconciliations
P&L & EPS reconciliations Statutory Ebitda to 12 month Adjusted Ebitda (£m) Adjusted Ebitda (£m) to Adjusted EPS Statutory EBITDA (10 months to Dec ‘15) 185 Adjusted EBITDA (12 months to Dec ‘15) 107 Negative goodwill on acquisition (124) Depreciation (19) IFRS fair value stock uplift 16 Amortisatio
Slide 13: Revenue & EBITDA bridges
Revenue & Ebitda bridges Revenue bridge (in £m) Ebitda bridge (in £m) +£39.6m (11%) +£42.0m (65%) 29.2 6.7 5.0 412.8 107.0 41.1 0.4 0.6 373.2 1.3 65.0 FX 2014 FX 2015 2014 2015 UK Clay US US Concrete UK UK 13
Slide 14: Highly cash generative
Highly cash generative Year end 31-Dec (£m) 2015 2014 Change % change Continued focus on working capital management Adj. EBITDA 107 65 42 65% Cash generation for 2015 ahead of expectations Capex (excl major projects) (9) (3) (6) Continued expenditure on capex and repairs underpin a well invest
Slide 15: Financial management
Financial management Dividend policy Debt Facilities Amount (£m) Margin Range p.a. The Group is strongly cash generative Term facility 200 1.25% - 2.50%. Dividend policy reflects the long-term earnings and Revolving facility 40 1.25% - 2.50%. cash flow potential of the Group Total facilities 240
Slide 16: Agenda
Agenda Introduction to the Group—Wayne Sheppard Overview—Wayne Sheppard Financial review—Kevin Sims Operating review and strategic update—Wayne Sheppard Q&A 16
Slide 17: Overview
Overview Operating segment review and market dynamics Major expansion and innovation capital projects Capital priorities Safety update Summary and outlook 17
Slide 18: Operating segment review—UK
Operating segment review—UK 2015 2014 % Growth Revenue £336m £308m 9% Adjusted EBITDA¹ £99m £58m 71% Adjusted EBITDA margin 29.4% 18.8% FY'15 UK revenue by end use2 Growth in Ebitda largely driven by clay brick pricing • Growing new build housing demand • Strong underlying fundamentals – Governmen
Slide 19: Supportive market dynamics in the UK
Supportive market dynamics in the UK Long term demand dynamics underpin expected growth in housing volumes Demand dynamics Total housing completions and formations in GB (000s) Supportive UK government policies • 500k formations in excess of “We will do everything we can 249 completions 2010 -2015 t
Slide 20: Expansion at Ibstock
Expansion at Ibstock Major capital expenditure development project Ibstock Leicester ‒ soft mud 3 (SM3) ...project in progress Project status Addition of 100m brick capacity p.a. Planning permission received Sept 2015 (c.13% of Ibstock's total and 5% of UK market) Orders placed with design and
Slide 21: Expansion at Forticrete
Expansion at Forticrete Major capital expenditure innovation and expansion project Continued focus on innovation… ...project in progress Forticrete Leighton Buzzard – tile line addition Leading the evolution of concrete tile design in the UK Enables Forticrete to offer a full range of tile solutio
Slide 22: Operating segment review—US
Operating segment review—US 2015 2014 % Growth Revenue $117m (£77m) $107m (£65m) 10% Adjusted EBITDA¹ $12m (£8m) $11m (£7m) 5% Adjusted EBITDA margin 10.4% 10.9% FY'15 US revenue by end use2 Growth in Ebitda: Infrastructure Improving volumes 4% Other New build Higher average prices benefiting
Slide 23: Supportive market dynamics in the US
Supportive market dynamics in the US Growth in both residential and non-residential housing Residential housing starts in Glen-Gery primary markets1,2 ('000s) Commentary New build housing c50% of Glen-Gery’s sales in 2015 Housing starts in Glen-Gery's primary markets fell sharply from 2006 – 200
Slide 24: Capital Priorities
Capital Priorities CAPITAL PRIORITIES Maintain current asset base Grow ordinary dividends within a 40% - 50% target pay-out ratio Capacity and innovation investments Disciplined acquisitive growth or surplus cash to be returned to shareholders UK US Expand existing positions Capture mark
Slide 25: Safety Update
Safety Update Performing well compared to industry peers Lost Time Accidents ( > 3 day absence) …ongoing initiatives Ibstock Plc British Ceramic Confederation Industry Figures Continued focus on 12 Ibstock Health and Safety Heavy Clay Industry Figures Fundamentals Training programme – internally
Slide 26: Summary
Summary A strong performance for 2015 delivering on IPO expectations Price negotiations for 2016 concluded - all major customers and channels in line with management expectations Major capital projects progressing well • Concrete tile line expected to be operational in the second half of 2016
Slide 27: Current Trading and Outlook
Current Trading and Outlook Early in the year for any real visibility - expectations for the full year remain unchanged. UK Clay • New residential and most other sectors growing to expectations • RMI below expectation (yard sales ~ destocking) • Overall a slower start than expected • UK Concrete •
Slide 28: A building family of exceptional brands
A IBSTOCK Hi A building family of exceptional brands 28
Slide 29: vy
vy
Slide 30: Board of Directors
Board of Directors The Ibstock Board is comprised of a Non-Executive Chairman, three independent Non-Executive Directors, two other Non-Executive Directors and two Executive Directors Jamie Pike Wayne Sheppard Kevin Sims Jonathan Nicholls Non-Executive Chairman Chief Executive Officer Chief Financia
Slide 31: Balance Sheet as at 31st December 2015
Balance Sheet as at 31st December 2015 Balance Sheet Year end 31-Dec (£m) 2015 Assets PP&E 347 Intangible 128 Non-current assets 475 Inventories 83 Trade receivables 59 Other 1 Current assets 143 Total assets 618 Payables (79) Other liabilities excl debt (78) Net assets 461 31