Slide 1: Financial Review
www.lucecoplc.com —
Slide 2: Agenda
Agenda Financial Review Business Review Outlook Q&A Note: ‘Adjusted’ has been used throughout this presentation and is defined in note 1 of the condensed consolidated financial statements Luceco ple 2023 Interim Results Presentation 2
Slide 3: Highlights
Highlights ¢H1 2023 results slightly ahead of the July trading update - Revenue: £101.1m (-5.0% YOY) - Adjusted Operating Profit: £10.8m (-6.1% YOY) reflects a return to strong gross margins (39.4%) - Adjusted EPS: 5.0p (-13.8% YOY) - Covenant Net Debt Ratio: 1.3x at lower end of range «Improving mo
Slide 4: Highlights (continued)
Highlights (continued) * Outlook: - Despite ongoing weakness in our core markets, we have made further progress since the July trading update - We now expect full year 2023 adjusted operating profit to show clear progress on last year. This is above the current range of market expectations - We rema
Slide 5: Financial Review
Slide 6: Financial highlights (H1 2023)
Financial highlights (H1 2023) Revenue Operating Profit £101.1m £9.8m -5% -2% vs H1 2022 vs H1 2022 LUCECO Adjusted Operating Profit £10.8m -6% vs H1 2022 Dividend Adjusted . Operating Margin eS) PE 10.7% 5.0p -O.1ppts -14% vs H1 2022 vs H1 2022 1.6p flat vs H1 2022 Luceco ple 2023 Interim Results P
Slide 7: Income statement
Income statement Adjusted £m H12023 HI. 2022 Change (%) + Revenue of £101.1m: Revenue 101.1 106.4 (5.0%) - 5.0% lower as destocking appears to have Gross profit 39.8 36.2 +9.9% ended and macroeconomic headwinds - Gross margin % 39.4% 34.0% +5.4ppts Sewer Uinta eypecice . . Overhead Bot 7A7 417.4% -
Slide 8: Revenue bridge
Revenue bridge vs H1 2022 (£m) 2.2 a3) TEENS Currency Acquisitions/ movements closures 21% (1.2%) LFL (5.8%) H1 2022 Luceco ple 2023 Interim Results Presentation (5.0%) H1 2023 + Revenue decline of 5.0%: - Like-for-like decline of 5.8% - Acquisitions/closures change due to closure of Germany in prio
Slide 9: Adjusted Operating Profit bridge
Adjusted Operating Profit bridge vs H1 2022 (£m) + Adjusted Operating Profit fell by just (1.7) £0.7m in the period 22 LFL * On a constant currency basis, mnovonnents Acauisitions/ 7.0% Adjusted Operating profit increased 14.8%) 17% _ by £1.0m year-on-year * Gross profit margin recovered in the peri
Slide 10: Improving momentum in H1 2023
Improving momentum in H1 2023 2023 2022 Variance . . 7 * Strong gross profit driver momentum Adjusted £m H1 H2 H1 H1 2023 v H2 2022 continued from H2 2022 to H1 2023 : 5 uJ +1. . . Revenue 101.1 99.9 Wes 12 * Expect the trend to continue in the Gross profit 39.8 38.1 36.2 +17 second half of 2023 Gro
Slide 11: Strong underlying trend of working capital management continues
Strong underlying trend of working capital management continues, balance sheet now returned to pre-customer destocking levels Working capital management 155 135 {138 121 56.655 7 97 “45.7 92 87 37.2| 81 8179 76 83 ww 8 x ee eee Average supplier lead time (days) Inventory (£m) Debtor days Adjusted Fr
Slide 12: Business Review
Slide 13: Business Review
Business Review Luceco ple 2023 Interim Results Presentation 13
Slide 14: Market growth
Market growth Barclays Consumer Spending Year-on-Year 15% @ Home improvements 10% Non-essential Spend sx NS ; \ Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul 22 22 22 22 22 22 22 23 23 23 23 23 23 23 Addressable Market Forecast % of Group UK Forecast Market volume change revenue! FY232 Res
Slide 15: Grow: Clear path for growth established
Grow: Clear path for growth established Driver Impact + EV charger market + Regulatory change and new technology +50% market growth (23F to 25F) Expect current 4% market share to be worth £12m revenue by 2025 +60% Increase in Luceco consumer unit sales during EICR regulation change Drive for simpler
Slide 16: Innovate: Strong pipeline of low risk, high impact innovation projects
Innovate: Strong pipeline of low risk, high impact innovation projects 27 aes ES Engineers og” 9 month in UK development 67 process Engineers in China 650 projects —— a new redesign / products cost down © sox C Soins success rate Luceco ple 2023 Interim Results Presentation
Slide 17: Sustain: Customers, Climate and People
Sustain: Sustaining our long-term progress by focusing on Customers, Climate and People + Renewed investment in contractor training: - Recognition of the next generation via Top 30 Under 30 Awards; >1,000 applicants - >100 nationwide training seminars - Luceco Academy training portal launched; used
Slide 18: Outlook
LUCECO OUTLOOK JOHN HORNBY CEO
Slide 19: Market Outlook
LUCECO Market Outlook Residential RMI - DIY (c.30% of Group) Residential RMI & New - Pro (c.30% of Group) Indicators Indicators Barclays Consumer CPA 2023 Forecast 8.0% Spending Index -2.2% - Residential RMI “e - Q2 Home Improvement Growth . . FMB State of Trade Survey mousing yiransections -22.1% ~
Slide 20: Outlook
LUCECO Outlook * Despite ongoing weakness in our core markets, we have made further progress since the July trading update and we now expect full year 2023 adjusted operating profit to show clear progress on last year. This is above the current range of market expectations * Long term market drivers
Slide 21: Q&A
Slide 22: Appendix
Slide 23: Company overview
Company overview To help people harness power A A 1 We operate in Grow Customer-driven sustainably in everyday life mitrartivelmariete Innovate Team-focused O2 We have an advantaged What we sell business model Sustain Bold and innovative * Designer and manufacturer of O3 We deliver compelling Princi
Slide 24: Performance by segment H1 2023
Performance by segment H1 2023 Wiring Accessories LED Lighting Portable Power Revenue growth +13% Revenue growth -7% Revenue growth -24% Profit growth -10% Profit growth +58% Profit growth -25% ce) fe) ce) 41% 37% 22% of Group revenue of Group revenue of Group revenue #2 in UK Top 10 in UK #1 in UK
Slide 25: What we sell: Wiring accessories - British General
What we sell Wiring accessories - British General Luceco ple 2023 Interim Results Presentation UK market size c.£500 m Established 1941 UK market position / approx market share #2 /15% Revenue as % of Group total! 41% Revenue 3-year CAGR % 2% Operating margin 17% Product categories Switches and sock
Slide 26: What we sell: Commercial power - Nexus
LUCECO What we sell Commercial power - Nexus UK market size c.£200 m Established 2021 UK market position / approx market share _ Recently established Product categories Decorative power & data modules, Cable management, Cables and connectors, Power distribution, Energy & user data management, Ergono
Slide 27: What we sell: LED lighting - Luceco
What we sell LED lighting - Luceco Luceco ple 2023 Interim Results Presentation UK market size ¢£700m Established 2013 UK market position / approx market share Top 10 / 4% LED Revenue as % of Group total! 37% Revenue 3-year CAGR %* 14% (4% organic) Operating margin's 5% Product categories Residentia
Slide 28: What we sell: LED lighting - Kingfisher
LUCECO What we sell LED lighting - Kingfisher UK market size ¢ £100m Established 1988 UK market position / approx market share UK #4 / 15% LED Revenue as % of Group total! 37% Revenue 3-year CAGR %* 14% (4% organic) Operating margin’? 5% Product categories Private realm exterior lighting 1. HI 2023
Slide 29: What we sell: LED lighting - DW Windsor
LUCECO What we sell LED lighting - DW Windsor UK market size ¢ £300m Established 1975 UK market position / approx market share UK #4 /13% LED Revenue as % of Group total! 37% Revenue 3-year CAGR %* 14% (4% organic) Operating margin’? 5% Product categories Public realm exterior lighting 1. HI 2023 2.
Slide 30: What we sell: Portable Power - Masterplug and BG Sync EV
What we sell Portable Power - Masterolug and BG Sync EV Luceco ple 2023 Interim Results Presentation LUCECO UK market size c¢ £250m Established? 1988 UK market position / approx market share? UK #1/ 40% Revenue as % of Group total! 22% Revenue 3-year CAGR % 2% (-1% organic) Operating margin 8% Produ
Slide 31: Who we sell to
Who we sell to Sales channel Retail 21% of revenue Hybrid 24% of revenue Professional Wholesale 26% of revenue Professional Projects 29% of revenue DIY chains amazon Pure play online Rea Sainsburys SLOF iM Retail grocers mo castorama= s Chains selling to both professionals and i= oe SEREWIX] © Goose
Slide 32: Who we sell to: sales by channel
Who we sell to Product segmental sales by sales channel (as % of total) - H1 2023 2% 1% 25% © Professional Projects @ Professional Wholesale 9 ass @ Hybrid @ Retail 49% 12% 18% 21% 7% Wiring LED Portable Total Accessories Lighting Power Luceco ple 2023 Interim Results Presentation 32
Slide 33: Where we operate
Where we operate Distribution Selling Sourcing to market markets 9, % 7 9, 5% 4% 1% © Europe © Sold in end market @ Americas @ UK @ Collected in China @ Asia Pacific @ China - OEM @ Middle East and Africa @ China © Europe - manufactured @ UK 49% —) —) 32% Group revenue Group revenue Group revenue by
Slide 34: Three reasons to invest: attractive markets
LUCECO Three reasons to invest We operate in attractive markets Strong positions... ... With significant growth potential Segment UK market position Wiring Accessories LED Lighting £3.5bn @ Luceco revenue Portable Power Currently addressable market - UK £2.1bn Electrical wholesale market - UK @ Inte
Slide 35: Three reasons to invest: advantaged business model
Three reasons to invest 02 We have an advantaged business model * Agile supply chain * High inventory availability 4 FULFIL in-country * Best-in-class warehouse IT * Able to offer products as part of design solution Luceco ple 2023 Interim Results Presentation All products designed in-house * c. 100
Slide 36: Three reasons to invest: compelling financial outcomes
Three reasons to invest O03 We deliver compelling financial outcomes 2020 2021 2022 Component Metric Target’ Results Results Results Revenue Total revenue growth >5% 2.4% 29.5% (9.6)% Profit Adjusted Operating Margin % 12% to 15% 17.0% 17.1% 10.7% Cash Adjusted Operating Cash Conversion % >100% 113.
Slide 37: Group history
Group history The group has developed through business combinations and organic expansion into new products and territories a= €) 4 Luceco LED projects Kingfisher Lighting SYNC Jiaxing expanded to 52,500m: British General wiring Acquisition of Kingfisher Lighting Sales offices in Spain and HK 2021 M
Slide 38: Capital allocation policy
LUCECO Capital allocation policy 01 Dividends 40-60% payout 02 Capex 2-4% of annual revenue Progressive Product development Manufacturing capacity <3 year payback Conservative leverage 1.0x - 2.0x Adjusted EBITDA M&A Product adjacency 04 Buybacks / Special Dividends Customer acquisition Clear synerg
Slide 39: 2013 to 2022 financials
2013 to 2022 financials Adjusted metrics Income Statement £m 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Revenue 65.6 82.3 103.1 133.7 167.6 163.9 172.1 176.2 228.2 206.3 Growth % 25.5% 25.3% 29.7% 25.4% (2.2%) 5.0% 24% 29.5% (9.6)% Gross Profit 18.3 25.1 33.8 40.5 48.4 50.6 62.3 70.2 84.7 74.
Slide 40: 2013 to 2022 financials continued
2013 to 2022 financials continued Adjusted metrics Balance Sheet £m 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Fixed assets 22.4 24.6 275 33.5 47.2 44.8 42.6 43.9 69.4 70.5 Inventory 14.0 23.8 26.2 35.4 44.2 32.8 32.2 37.2 56.6 475 Trade receivables 10.5 71 20.4 26.5 33.4 39.5 42.8 70.1 67.9
Slide 41: 2013 to 2022 financials continued
20135 to 2022 financials continued Adjusted metrics Cash flow statement £m 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Operating Profit 5.9 8.4 1.5 14.5 14.7 8.5 18.0 30.0 39.0 22.0 Depreciation & amortisation 1.4 19 2.6 3.2 44 65 79 61 67 71 EBITDA 7 0.3 14.1 17.7 19.1 15.0 25.9 36.1 45.7 29.
Slide 42: Disclaimer
Disclaimer This presentation and information communicated verbally to you may contain certain projections and other forward-looking statements with respect to the financial condition, results of operations, businesses and prospects of Luceco plc. These statements are based on current expectations an