Marshalls Plc · LSE:MSLH
Marshalls — FY2011 Earnings Presentation
30 slides from Marshalls's earnings presentation, 2012
Slide 1: Marshalls
Marshalls
Slide 2: Highlights
Highlights 2011 2010 % Revenue £334.1m £308.8m +8 EBITDA £35.0m £31.9m +10 Operating profit £16.7m £13.0m +29 Profit before tax £13.7m £10.4m +31 Basic EPS (continuing operations) 6.30p 4.21p +50 Basic EPS (total operations) 3.78p 3.76p +1 Dividends declared 5.25p 5.25p Final dividend recommended 3.
Slide 3: Revenue Growth
Revenue Growth £m 334.1 297.8 308.8 Revenue growth 8.2% 2009 2010 2011 Revenue Movement Revenue £m 2010 308.8 Working days: 1 fewer in 2011 (1.3) -0.4% 307.5 UK 17.7 +5.7% International 8.9 +2.9% 2011 334.1 +8.2% 3
Slide 4: Revenue Analysis
Revenue Analysis Public Sector and Commercial Revenue z 64% of Group z Revenue up 9% z Price up 4%, volume up 5% Domestic Revenue z 36% of Group z Revenue up 7% z Price up 4%, volume up 3% 4
Slide 5: Profit for the Financial Period
Profit for the Financial Period 2011 2010 % £m £m Continuing Operations EBITDA 35.0 31.9 +10 Depreciation/Amortisation (18.3) (18.9) Operating profit 16.7 13.0 +29 Discontinued Operations (4.9) (0.9) 5
Slide 6: Margin Reconciliation
Margin Reconciliation Movement in Impact on Revenue Operating Margin Profit £m £m % 2010* 308.8 13.0 4.2 Price increases to recover costs 12.3 (0.4) (0.3) Volume 13.0 3.1 0.8 Property - 1.0 0.3 2011* 334.1 16.7 5.0 £m % Underlying operating profit 334.1 15.3 4.6 Property 1.4 16.7 * Continuing operat
Slide 7: Free Cash Flow
Free Cash Flow Cash inflow arising from: 2011 2010 £m £m Operating profit 16.7 13.0 Depreciation and amortisation 18.3 18.9 EBITDA (continuing operations) 35.0 31.9 Discontinued operations (0.5) (0.8) EBITDA (total operations) 34.5 31.1 Net financial expenses paid (3.5) (2.2) Taxation received/(paid
Slide 8: Cash Flow
Cash Flow 2011 2010 £m £m Free cash flow 15.9 20.8 Investment z Capital expenditure* (13.6) (11.9) z Proceeds from sale of surplus assets 5.4 3.9 z Investments / acquisitions** (8.2) (0.1) z Disposal proceeds 0.6 - Dividends paid (10.3) (10.3) Sub-total (10.2) 2.4 Finance leases (0.1) - Movement in
Slide 9: Additional Information and Ratios
Additional Information and Ratios 2011 2010 Interest charge: Charge £3.0m £2.6m Cover 5.6 times 5.1 times Tax rate 11.1% 21.1% EPS: Continuing operations 6.30p 4.21p Total operations 3.78p 3.76p Dividend: 2011 interim and final announced 5.25p 5.25p Cover (continuing operations) 1.2 times 0.8 times
Slide 10: Significant Borrowing Facilities
Significant Borrowing Facilities £m 220 200 Expiry Date Facility Cumulative 180 Facility 160 £m £m 140 Committed facilities: 120 Q3 2016 50 50 100 Q3 2015 75 125 80 Q3 2014 20 145 60 40 On demand facilities: 20 Available all year 25 170 0 Seasonal 2011 2012 * (February to August inclusive) 20 190 On
Slide 11: Pensions
Pensions Risk Management YE YE 20 2008 2011 2000 closed to new members 2006 closed to future service accrual 10 2007 investment strategy 0 YE HY Investment Strategy H1 2010 2011 -10 Moved from equities to LDIs 2008 YE Closer matching to liability profile of -20 2007 pension scheme H1 H1 -30 H1 2010
Slide 12: Delivering Flexibility and Sustainable Outperformance
Delivering Flexibility and Sustainable Outperformance 12
Slide 13: Operating Flexibility
Operating Flexibility Capacity Available Geographic Coverage Maintained Available 25% Operating 75% = 2 hours driving time 13
Slide 14: Sustainable Growth
Sustainable Growth Public Sector and Commercial - targeted marketing and product innovation Domestic - installer initiatives and distributor merchandising International - specialist landscape products into selected markets 14
Slide 15: Public Sector and Commercial Targeted Marketing
Public Sector and Commercial Targeted Marketing 15
Slide 16: Public Sector and Commercial Targeted Marketing
Public Sector and Commercial Targeted Marketing Current Activity by Scape Growth by Scape Marshalls Change Marshalls in Sales MAT Change perper In Sales Project Type Project Type r lic he ub Civil and Public Ot n dP la C ivi Civil Engineering t or n sp T ra Education il / Ra ... Hotel and Catering n
Slide 17: Domestic Market Installers
Domestic Market Installers Marshalls Register - Installer Teams 1800 1700 Customer service remains excellent 1600 1500 1400 1300 8 9 0 1 08 09 10 11 12 l-0 l-0 l-1 l-1 n- n- n- n- n- Ju Ju Ju Ju Ja Ja Ja Ja Ja 17
Slide 18: Domestic Market Better Business Programme
Domestic Market Better Business Programme Installer Better Business Programme Working to improve and demonstrate quality 18
Slide 19: International Markets
International Markets z Two operating sites, 40 million people within a 2 hour drive time z Natural sandstone, granite and limestone from India and China z Specialist manufactured products and street furniture from the UK z Key synergies – marketing and sales collateral, sales processes and systems,
Slide 20: Revenue Per Day Index
Index Ja 75.0 80.0 85.0 90.0 95.0 100.0 n- 09 Fe b M ar Ap r M ay Ju n Ju l Au g Se pt O ct No v De Ja c n- 10 Fe b M ar Ap r M UK Domestic ay Ju n Ju l Au g Se pt O ct Revenue Per Day No v De Ja c n- Moving Annual Total 11 Fe b M ar Ap r Public Sector and Commercial M ay Ju n Ju l Au g Se pt O ct N
Slide 21: Public Sector and Commercial New Work Sales Lead Indicator
Public Sector and Commercial New Work Sales Lead Indicator Contract Awarded 12 Month Rolling Average of Hard Landscape Value Adjusted (ABI with 12 Month Lag) 330 275 £millions 220 165 110 55 5 6 7 8 9 0 1 2 05 06 07 08 09 10 11 12 13 l- 0 l- 0 l- 0 l- 0 l- 0 l- 1 l- 1 l- 1 n- n- n- n- n- n- n- n- n-
Slide 22: Consumer Confidence and Installer Order Books
Consumer confidence (6 month rolling) - Ja n -40.0 -35.0 -30.0 -25.0 -20.0 -15.0 -10.0 -5.0 -0 Ap 5 r- 05 Ju l-0 O 5 ct -0 Ja 5 n- 0 Ap 6 r- 06 Ju l-0 O 6 ct -0 Ja 6 n- 0 Ap 7 r- 07 Ju l-0 O 7 ct -0 Ja 7 n- 0 Ap 8 r- 08 Ju l-0 O 8 ct -0 Consumer Confidence Ja 8 n- 0 Ap 9 r- 09 Ju l-0 O 9 Domestic Ma
Slide 23: Market Outlook
Market Outlook Revenue Proportions 2011 2012 Commercial 35% Public 23% Do it for me 28% DIY 5% New build 6% International 3% 100% 23
Slide 24: Summary
Summary Financial flexibility – further progress with bank facilities, pension deficit and property sales Sales led Company - well known Superbrand: “Creating Better Landscapes” Range of marketing and sales initiatives building on unique competitive advantages in UK International expansion – niche,
Slide 25: Appendices
mB Marshalls Appendices
Slide 26: Construction Products Association
Construction Products Association 2008 2009 2010 2011 2012 2013 2014 2015 £m/% change Actual Actual Actual Estimate Forecast Forecast Forecast Forecast Housing 18,614 13,721 17,181 18,037 17,417 18,035 18,996 20,351 -20.8% -26.3% 25.2% 5.0% -3.4% 3.5% 5.3% 7.1% Other New Work 53,118 46,772 52,435 52
Slide 27: Financial Flexibility
Financial Flexibility 2011 Actual EBITA: Interest charge 5.4 times Net Debt: EBITDA 2.2 times z EBITA to interest charge must be greater than 2.5x z Net debt to EBITDA must be less than 3.0x z Net assets must be greater than £100 million 27
Slide 28: Net Assets
Net Assets £m £m 2010 Year End Net Assets 198.2 Impact of movements in year: Profit for the financial period 7.3 Ordinary dividends (10.3) Actuarial movement on pensions (after tax) 7.5 Hedging reserve (0.1) Share based expenses 0.2 Foreign currency translation differences (0.1) Non-controlling inte
Slide 29: Disclaimer
Disclaimer • For the purposes of the following disclaimer, references to this “presentation” shall be deemed to include references to the presenters’ speeches, the question and answer session and any other related verbal or written communications. • This presentation, which is personal to the recipi
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