Slide 1: 2024 Full Year Results
2024 Full Year Results 27th February 2025
Slide 2: Andrew Livingston, Chief Executive Officer
Andrew Livingston Chief Executive Officer
Slide 3: Business performed well in a challenging marketplace
Business performed well in a challenging marketplace Results met our expectations, stronger end to end business ▪ Group sales ahead of 2023 (+0.5%),+47% on 2019 ▪ Gained market share, mitigating a decline in size of UK market ▪ Entry level kitchens represented more of the kitchens we sold ▪ Kitchen
Slide 4: Performance demonstrates strength of our in-stock model founded on local relationships
Performance demonstrates strength of our in-stock model founded on local relationships ▪ Reflects combination of a strong product line-up, high stock availability, industry leading service levels and a very engaged team ▪ Benefits of on-going investment in customer focussed strategic initiatives ▪ R
Slide 5: Robust business model in markets with significant growth opportunities
Robust business model in markets with significant growth opportunities ▪ In 2025, we expect market conditions to remain challenging ▪ Well prepared for such market conditions ▪ Model capable of delivering sustainable market share gains ▪ Addressable UK markets in which we have an established presenc
Slide 6: Initiatives to increase market share and profits
Initiatives to increase market share and profits Depot Evolution Range and Supply Management Digital Development International
Slide 7: Paul Hayes, Financial Review
FINANCIAL REVIEW Max photo Paul Hayes Chief Financial Officer
Slide 8: Financial highlights
Financial highlights Robust performance in challenging markets £m 2024 2023 % change Revenue 2,322.1 2,310.9 0.5% ▪ Another year of solid market share gains Gross profit 1,431.1 1,403.9 ▪ Maintained sector leading margins in continued inflationary market Gross margin % 61.6% 60.8% +80bps Operating c
Slide 9: Revenue
Revenue Revenue in line with last year in challenging markets UK (£m) 2024 2023 change ▪ Continued market headwinds Revenue 2,247.4 2,241.1 +0.3% Same depot basis1 2.204.9 2,231.8 -1.2% ▪ Balanced and disciplined approach to pricing and volume Number of depots 869 840 +29 ▪ Strategic initiatives dri
Slide 10: Profit before tax
Profit before tax Disciplined pricing management and purchasing efficiencies delivered higher gross margins Price Sourcing & ▪ Disciplined pricing £m Volume manufacturing (revenue) & mix efficiencies 35 Operating ▪ Delivered purchasing efficiencies and savings in Costs 11 manufacturing operations to
Slide 11: Operating expenses
Operating expenses Efficiency savings protected investments in strategic initiatives Change +£28m £m Existing Other UK costs Investment of £32m in strategic initiatives: Other International depots 53rd week Strategic growth 4 New UK Initiatives 6 ▪ 61 new UK depots since start of 2023 depots 4 12 1,
Slide 12: Cashflow
Cashflow Strong cash generation supports investments and attractive returns £m 2024 2023 Opening cash 282.8 308.0 ▪ Major working capital movements: Operating cash flows1 504.6 470.8 • Stock £8m higher Working capital increase (65.3) (35.0) • Trade Debtors £58m higher • Creditors £13m higher Capital
Slide 13: Uses of cash
Uses of cash Howdens has a strong track record of cash generation, investment and capital returns Over the past 10 years: £495m 500 £3.5bn £790m Generated in operating cashflow** Invested in capex ▪ Strong cash generation while investing for future growth 400 £811m £651m ▪ Established capital alloca
Slide 14: Technical guidance in 2025
Technical guidance in 2025 Income statement Impact National Insurance and National Minimum Wage Annualised costs of £18m Foreign exchange sensitivity +/- €0.01 = £1.8m +/- $0.01 = £0.8m Effective tax rate c.24% Two fewer trading days in H1 2025 vs prior year Revenue c. £10m lower in H1 2025 Cashflow
Slide 15: Summary
Summary ▪ Good performance in 2024 with further market share gains ▪ Ongoing productivity and efficiency savings in a challenging market ▪ Strong balance sheet and cash generation supports our investment in Howdens’ strategic initiatives ▪ Confident in our plans for the business 15
Slide 16: Andrew Livingston, Chief Executive Officer
Andrew Livingston Chief Executive Officer
Slide 17: Initiatives to increase market share and profits
Initiatives to increase market share and profits Depot Evolution Range and Supply Management Digital Development International
Slide 18: Initiatives to increase market share and profits
Initiatives to increase market share and profits Depot Evolution Range and Supply Management Digital Development International
Slide 19: Extending the UK footprint
Extending the UK footprint High service levels valued by customers ▪ Modern working and trading environment ▪ Cost effective updated format ▪ 29 depots opened in 2024 ▪ 869 depots trading at year-end In 2025: ▪ Expect to open c.20 new depots ▪ Scope for around 1,000 depots in the UK 19
Slide 20: Converting more depots to the updated format
Converting more depots to the updated format Positive feedback from depot teams and customers 76 depots reformatted in 2024* 60%+ of depots opened in the old format 52% Total 350 depots reformatted by end of 2024* revamped by end of 2025 70%+ c. 60 revamps in 2025 of all depots trading in the update
Slide 21: Initiatives to increase market share and profits
Initiatives to increase market share and profits Depot Evolution Range and Supply Management Digital Development International
Slide 22: Sales of new product (NPI) make a significant contribution to our performance
Sales of new product (“NPI”) make a significant contribution to our performance Upgraded new product programme in recent years In 2024: 20% of total UK product sales were of new product introduced in last two years 30% of total UK product sales were of new product introduced over last three years 17
Slide 23: Managing our kitchen portfolio for best availability and profitability
Managing our kitchen portfolio for best availability and profitability ▪ More efficient NPI testing enables us to bring more proven colours and styles to market more quickly ▪ Platform sharing amongst kitchen families helps us introduce new kitchen options cost effectively ▪ Programme of stock manag
Slide 24: Market leading and competitively priced product is a key feature of our model
Market leading and competitively priced product is a key feature of our model Price featured prominently in 2024 and we expect it to do so again in 2025 For 2025 : ▪ Emphasis on value for money and choice at all price points ▪ As enhanced by 2025 NPI, well positioned in all product categories ▪ Kitc
Slide 25: Colours for our entry and mid-level ranges
2025: Colours for our entry and mid-level ranges Greenwich Gloss Porcelain 25
Slide 26: Colours for our entry and mid-level ranges
2025: Colours for our entry and mid-level ranges Allendale Pebble 26
Slide 27: Colours for our entry and mid-level ranges
2025: Colours for our entry and mid-level ranges Clerkenwell Gloss Sand grey 27
Slide 28: Colours for our entry and mid-level ranges
2025: Colours for our entry and mid-level ranges Halesworth Reed Green 28
Slide 29: Colours for our contemporary premium family
2025: Colours for our contemporary premium family Hockley Reed Green & 29 Textured Dark Oak
Slide 30: Paint to order service for timber kitchens performing well
Paint to order service for timber kitchens performing well ▪ Performed well in first full year ▪ Favourable reception since launch in 2nd Half of 2023 ▪ Service available to customers buying our Chilcomb and Elmbridge timber kitchens For 2025 15 Paint to order colour choices + nine from stock 30
Slide 31: Developing a market leading solid work surface capability
Developing a market leading solid work surface capability ▪ Solid worktops often associated with sales of higher priced kitchens ▪ Our manufacturing capacity for these products is now amongst the largest in UK ▪ Sales increased again in 2024 as we continued to enhance our offer ▪ In 2025 adding furt
Slide 32: Innovating in other categories
2025: Innovating in other categories Holkham Brushed Aged Brass Swan Holkham Single Bowl Butler Sink Neck Pull Out Kitchen Tap Howdens Holdenby Primed Lamona Double Oven 32
Slide 33: Innovating with own label brands in other categories
2025: Innovating with own label brands in other categories Iseo Antique Brass Rose Handle Warm Oak Dark Oak Como Polished Chrome Handle Range 33
Slide 34: Fitted bedrooms performing well; upscaling offering in 2025
Fitted bedrooms performing well; upscaling offering in 2025 Suits skills of customers who fit kitchens High cabinetry content, matching our manufacturing capabilities Developed in-house, using existing infrastructure Year-end 2024 : Bridgemere Dove Grey Greenwich Sandstone ▪ 19 bedrooms in four lead
Slide 35: Reinforced focus on price and promotions
Reinforced focus on price and promotions which demonstrate the value we offer and promotes footfall 35
Slide 36: High stock availability is a key component of our offer
High stock availability is a key component of our offer; our service level from primary to UK depots was 99.98% in 2024 36
Slide 37: Increased manufacturing capacity and broader capabilities at Howden site
Increased manufacturing capacity and broader capabilities at Howden site Production on the new furniture lines totalled c.1.7m pieces in 2024 ▪ Ability to make a variety of kitchen furniture ▪ Same quality as externally sourced product ▪ Lower cost and reduced lead time to delivery Second architrave
Slide 38: New paint to order lines for premium kitchens running smoothly
New “paint to order” lines for premium kitchens running smoothly 2024 : Supplied product all year for the first time ▪ Achieved the target order turnaround time ▪ Demand more than doubled in peak Autumn trading period Located in purpose-built facility near Howden site Industry leading capability for
Slide 39: Plans to develop the Runcorn site to accommodate our ambitions
Plans to develop the Runcorn site to accommodate our ambitions for the business Our Runcorn factory‘s high-volume, low-cost panel making capability has always been an integral part of our manufacturing and logistics strategy In line with our ambitions for the business, we are in discussions with all
Slide 40: Initiatives to increase market share and profits
Initiatives to increase market share and profits Depot Evolution Range and Supply Management Digital Development International
Slide 41: Increased usage of on-line trade account facilities
2024 Increased usage of on-line trade account facilities which are valued by customers & depots C. 111k new account registrations C. 50% of customers had an online account at the year-end ▪ + 50% total user views of trade platform ▪ 80% of users looking at their individual and confidential prices ▪
Slide 42: High levels of engagement with our web platform and growing social media presence
2024 High levels of engagement with our web platform and growing social media presence 23.9m site visits #1 for fitted kitchen site visits amongst specialists Page view metrics at consistently high levels 610k followers across leading social media sites ▪ 15% up on 2023 ▪ 5.8m monthly engagements 42
Slide 43: New digitised in-stock management system, Live-Stock
2024 New digitised in-stock management system, “Live-Stock”, operating in all UK depots Record and pick deliveries, check allocations and determine depot stock levels Frees up time for depots to use more productively (amongst other benefits) Enables complete visibility of stock holdings throughout t
Slide 44: Upgraded Click and Collect capability
2024 Upgraded “Click and Collect” capability for “every day” products Live-Stock and other initiatives enable us to upgrade significantly our “Click and Collect” service Available to all online account holders ▪ Check real time availability of stock on a depot–by- depot basis ▪ Review their individu
Slide 45: Supporting depots manage their customer relationships, digitally
2025 Supporting depots manage their customer relationships, digitally Making our depot account management tools more efficient and productive New account management tool captures information from multiple sources and makes it accessible via a single dashboard ▪ Initial functionality enables automati
Slide 46: Initiatives to increase market share and profits
Initiatives to increase market share and profits Depot Evolution Range and Supply Management Digital Development International
Slide 47: Sales in France increased, with performance improving in the 2nd half
2024 Sales in France increased, with performance improving significantly in the 2nd half 65 depots trading by the end of 2023 In 2024, focussed on team development; performance improved in latter part of the year Invested in business with enhanced offerings of footfall promoting products, alongside
Slide 48: Encouraging sales in the Republic of Ireland; opening more depots in 2025
2024 Encouraging sales in the Republic of Ireland; opening more depots in 2025 ▪ Market suits our differentiated model ▪ Opened for business in 2022, using a similar location strategy to France ▪ Supported by UK infrastructure and group digital platform Re do with five new ▪ Ten depots trading by en
Slide 49: Well-planned on our strategic initiatives
Well-planned on our strategic initiatives as we deliver value to customers across all price points ▪ All new kitchen ranges to be in stock well ahead of peak trading ▪ Rooster promotional activity and other price initiatives ▪ Improvements to service and availability by utilising XDCs efficiently an
Slide 50: Outlook
2025: Outlook ▪ Market conditions to remain challenging ▪ Total kitchen market is likely to contract again this year ▪ Well prepared for the challenges and opportunities ahead ▪ Aim to retain a profitable balance between price and volume ▪ Maintain competitive pricing with operating costs aligned ▪
Slide 51: ©. =|
©. =|
Slide 52: Questions & Answers
Questions & Answers 52
Slide 53: Slide 53