Marshalls Plc · LSE:MSLH
Marshalls — Investor Day (November 2024)
123 slides from Marshalls's investor day presentation, Nov 19, 2024
Slide 1: Transform & Grow Capital Markets Event
Transform & Grow Capital Markets Event 19 November 2024 Marshalls Capital Markets Event 2024. 1
Slide 2: Transform & Grow agenda
Transform & Grow agenda 01 Marshalls is evolving 02 Our markets and growth drivers 03 Transform & Grow strategy 04 Business unit strategies 05 Investment case 06 Summary 07 Q&A Marshalls Capital Markets Event 2024 2
Slide 3: Today's team
Today’s team Executive Directors Matt Pullen Justin Lockwood Simon Bourne Chief Executive Chief Financial Officer Chief Commercial Officer Business Unit Directors Nick Platt Susan Barclay Stuart Elmes Paul Curtis Dean Harris Managing Director Managing Director Chief Executive Managing Director Manag
Slide 4: Marshalls is evolving
SECTION Marshalls is evolving Marshalls Capital Markets Event 2024 4
Slide 5: Marshalls is evolving
Marshalls is evolving Roofing & Solar From its heritage in landscaping to an increasingly diversified group of businesses. Bricks & Masonry 2022 Civils & Drainage Landscape 2018 2017 2014 Marshalls Capital Markets Event 2024 5
Slide 6: Proven track record of market outperformance and diversification
Marshalls has a proven track record of market outperformance and diversification has created a stronger, more adaptable and resilient business even through the cyclical downturn Adjusted profit before tax and ONS construction output Operating cash flow conversion 100.0 200 120% 90.0 180 113% 90.4 8
Slide 7: Balanced and resilient exposure to our end markets
We have established a balanced and resilient exposure to our end markets End market exposure Reporting segments Landscaping Products Roofing Products Building Products 30% 11% 29% 33% 43% 42% 45% Marshalls 62% Group 2023 44% 5% 29% 27% Portfolio 2014 85% 15% New Housing Housing RMI Commercial & Infr
Slide 8: Over the last six months we have 'lifted the bonnet'
Over the last six months we have ‘lifted the bonnet’ on the business and rigorously considered the choices on how to realise the Group’s potential March 2024 Half year 2024 May – October 2024 Shared my first Recognition of underperformance Strategy review undertaken to impressions in Landscaping hea
Slide 9: Recognition of underperformance in landscaping and improvement actions
Recognition of underperformance in landscaping heartland and immediate improvement actions Improvement actions underway • Recruited experienced talent into senior roles in both sales and marketing including – Nick Platt, MD Landscaping – Stacey Temprell, Marshalls brand Marketing Director • Re-organ
Slide 10: Providing clarity on the next stage of growth and value creation
Providing clarity on the next stage of our growth and value creation Key takeaways from today Attractive diversified portfolio Investing to enhance capability of businesses, exposed to scale markets productivity and optimise the inherent with long-term growth drivers and strengths in our nationwide
Slide 11: Our markets and growth drivers
SECTION Our markets and growth drivers Marshalls Capital Markets Event 2024 11
Slide 12: Our potential addressable market is of significant scale
Our potential addressable market is of significant scale and presents material opportunity and headroom to drive profitable growth Potential addressable market Market segments Core categories UK building aligned to Marshalls market products market Marshalls addressable market Market segments that si
Slide 13: Markets exposed to long-term growth drivers
Markets exposed to long-term growth drivers associated with climate change Green urbanisation Water management Low carbon & drainage solutions Marshalls Capital Markets Event 2024 13
Slide 14: Markets with structural and regulatory tailwinds will fuel revenue
And in the nearer term, markets with structural and regulatory tailwinds will fuel revenue growth in our business units Water Near-term growth tailwinds Landscaping Roofing Solar Management Bricks New housing – Ambition to build 1.5 million new homes in this parliament – Equals 8-9% p.a. increase in
Slide 15: Enviable market share positions with differentiated brands
Marshalls has enviable market share positions with strong differentiated Marshalls brand propositions and significant headroom for growth Other Landscaping Roofing Solar Water Management Bricks Concrete Natural stone Concrete and clay tiles In-roof Residential Infrastructure Facing, common and and p
Slide 16: Marshalls will transform and grow through the next cycle
Marshalls will transform and grow through the next cycle: unlocking our potential for growth and value creation Increasingly diversified group of businesses beyond its heritage in Landscape with: Where we are today Portfolio of strong Reputation for Strength in operational Good customer Knowledgeabl
Slide 17: Transform & Grow strategy
SECTION Transform & Grow strategy Marshalls Capital Markets Event 2024 17
Slide 18: Marshalls Purpose Video
Marshalls Purpose Video Marshalls Capital Markets Event 2024 18
Slide 19: Researched end markets, customer needs and what they value
We have extensively researched end markets, customer needs and what they value about our business propositions Marshalls are a premium Marshalls are generally regarded well by architects because they engage product we will pay more than early, provide post project support competitors for that qualit
Slide 20: Customers value a unique set of capabilities
Our customers value a unique set of capabilities that are consistent across our businesses Leading Best in class technical Carbon brands and design support leadership Market-leading brands and solutions Technical know-how and understanding Commitment to materials innovation consistently recognised f
Slide 21: Focus on winning with customers who value our capabilities
Focus on winning in markets with customers who value our unique set of capabilities Our UK value chain Key influencers on specification Manufacturing Distribution Contracting & installation End customer / user Housebuilders Tier 1 & 2 contractors Builders merchants Housing Associations Design & buil
Slide 22: Our strategy: Transform & Grow
Best in class Our strategy: technical and Transform & Grow design support Customers Carbon who value our Leading leadership unique set of brands capabilities Business wide Leadership in ESG People, organisation enterprise excellence governance and standards and culture Marshalls Capital Markets Even
Slide 23: Leveraging the strength of our portfolio of leading brands
Leveraging the strength of our portfolio of leading brands Leading brands Our broad range of sustainable solutions for the built environment play a vital role in Building Tomorrow’s World Marshalls Capital Markets Event 2024 23
Slide 24: Slide 24
Slide 25: Best in class technical and design support
Creating value through our best in class technical and design support Technical and design support Pavement Water management Roofing dry fix Integrated Lower carbon engineering and drainage & ventilation solar bricks Matching the environmental Custom design and build Systems reducing Full wrap aroun
Slide 26: Strengthening our carbon leadership
Strengthening our carbon leadership Carbon leadership Materials innovation Nationwide network Carbon leadership Landscaping Products • Innovative Triblend mix design Roofing Products Environmental Product Declaration technology, c.60% less cement Building Products • Pioneering carbon cure technology
Slide 27: Investing in business wide enterprise excellence
Investing in business wide enterprise excellence Investing in technology and systems Embedding operational and commercial excellence Business wide enterprise experience Data driven business intelligence Investing in our data analysis insight and reporting Building powerful customer and supplier part
Slide 28: Commitment to leading on ESG standards and governance
Commitment to leading on ESG standards and governance Leadership in ESG governance and standards SBTi-approved Recognised as Between 2008 Environmental Less than 1% of Celebrating 10 Comprehensive net-zero target one of Europe’s and 2023, our Product our waste goes years of having human rights acros
Slide 29: Investing in our people and culture
Investing in our people and culture… People, organisation and culture Leadership talent Learning & development Colleague engagement High performing culture ▪ Momentum Team ▪ Apprenticeships ▪ Monthly leadership call ▪ Performance management ▪ Leadership development ▪ Accredited learning ▪ Townhalls
Slide 30: Each business to deliver against core strategic imperatives
Our Transform & Grow strategy requires each part of our business to deliver against core strategic imperatives Portfolio role Business units Strategic imperative Marshalls Landscaping Drive greater value from distinctive national model Brand Powerhouses Marley Roofing Defend heartlands & drive shar
Slide 31: Operating model will evolve to support Transform & Grow
Our operating model will evolve to support our Transform & Grow strategy Business units Clearly aligned marketing, sales, finance and operations teams delivering business unit strategies, plans and performance Landscaping Products Roofing Products Building Products Marshalls Marshalls Marshalls Marl
Slide 32: Our strategy: Transform & Grow targets
Our strategy: Transform & Grow 2-4% market outperformance 15% operating margin 90% cash conversion 0.5 -1.5x 2x pre-IFRS16 net debt to EBITDA dividend cover leverage target range £20-30m capital expenditure pa 15% return on capital employed
Slide 33: Business unit strategies
SECTION Business unit strategies Marshalls Capital Markets Event 2024 33
Slide 34: Focused and experienced business unit leadership teams
Focused and experienced business unit leadership teams Portfolio role Brand Powerhouses Growth Engines Viridian Marshalls Marshalls Marshalls Marley Water Landscaping Roofing Solar Bricks & Masonry Management Nick Platt Susan Barclay Stuart Elmes Paul Curtis Dean Harris Managing Director Managing Di
Slide 35: Each business to deliver against core strategic imperatives
Our Transform & Grow strategy requires each part of our business to deliver against core strategic imperatives Portfolio role Business units Strategic imperative Marshalls Landscaping Drive greater value from distinctive national model Brand Powerhouses Marley Roofing Defend heartlands & drive shar
Slide 36: Marshalls Landscaping
SECTION . Marshalls Landscaping Marshalls Capital Markets Event 2024 36
Slide 37: Slide 37
Slide 38: Marshalls Landscaping snapshot
Marshalls Landscaping snapshot Landscaping share % Share of group revenue % Revenue by end market % Revenue split by product category 3%4% 29% 17% 32% 2023 48% 42% 52% £322M 29% 44% Marshalls New housing Landscaping Concrete block paving Housing RMI Concrete flags, kerbs & edging Concrete Natural st
Slide 39: Landscaping will benefit from structural and regulatory tailwinds
Landscaping will benefit from the near term structural and regulatory tailwinds Water Near term growth tailwinds Landscaping Roofing Solar management Bricks New housing – New housing accounts for 29% of our market exposure in Landscaping – Specification opportunity with housebuilders and landscap
Slide 40: Customers who value our capabilities in Landscaping
We are clear on the customers who value our unique set of capabilities and influence specification in Landscaping Landscaping value chain Key influencers on specification Manufacturing Distribution Contracting & installation End customer / user Commercial landscaping Commercial building Tier 1 cont
Slide 41: Landscaping: our winning proposition
Landscaping: our winning proposition Leading Best in class technical Carbon brands and design support leadership 100+ years of expertise and Unrivalled material R&D Carbon leadership across Scope innovative solutions and innovation 1, 2 & 3 emissions Distinctive national model Expert support thro
Slide 42: Growth strategy builds on near-term improvement actions
Our growth strategy will build on the near-term performance improvement actions already underway in Landscaping Re-energising the core elements of our historical success and winning model Clear specification focus Great customer relationships Market leading value-add product mix Clear product pr
Slide 43: Drive greater value from distinctive national model
Landscaping strategic imperative: drive greater value from distinctive national model Commercial Reinforce brand position in commercial heartlands Drive share growth in higher margin commercial segments with headroom Residential Strengthen brand position and drive share in residential segments
Slide 44: Commercial landscaping growth strategy
Commercial landscaping growth strategy How we will win and our value creation levers Build key Distinctive influencer proposition relationships range, service, carbon tier 1, architects, leadership designers, local authorities Unique Range rationalisation & national Specification pipeline conversion
Slide 45: Westminster City Council – low carbon footway
Westminster City Council – low carbon footway Pioneering trial developed jointly with contractors Marshalls re-engineered paving & sub-base requirements • 79% carbon saving in operational delivery against a typical Westminster Council project • 46% carbon saving per m² of materials used Marshall
Slide 46: Battersea Power Station – commercial landscaping
Battersea Power Station – commercial landscaping Mixed use development at Battersea Power Station Carbon leadership & design expertise; bespoke, value engineered pavement designs that achieved carbon savings of 18% Led to direct engagement of our Pavement Engineers on all future phases of the Bat
Slide 47: Residential landscaping growth strategy
Residential landscaping growth strategy How we will win and our value creation levers Build key Distinctive influencer proposition relationships range, service, carbon landscape leadership architects, installers and merchants Unique Range rationalisation national Merchant visibility & simplicity o
Slide 48: Packington Hall – new housing landscaping
Packington Hall – new housing landscaping Traditional mews & modern coach houses built in the grounds of Grade II listed Hall Distinctive offer that blended concrete & porcelain paving to meet the conservation requirements Front and back of house solutions Our national network reduced site deliv
Slide 49: Garden & driveway design – domestic landscaping
Garden & driveway design – domestic landscaping We support accredited Marshalls’ landscaping installers to transform large outdoor spaces into multi-level garden retreats Our products help landscaping designers to transform domestic spaces for their clients who want both functional and aesthetical
Slide 50: Pioneering new technologies and innovation to fuel growth
Pioneering new technologies and innovation to fuel growth Pioneering concrete technology Energy transition Sustainable Drainage systems Innovative concrete designs and finishes from the Bringing energy transition and concrete technology Innovation driven by biodiversity net gain and Dual block pla
Slide 51: Landscaping summary
Landscaping summary Drive greater value from distinctive national model Near term improvement actions starting to gain traction Tailwinds will underpin growth Strengthen relationships with key influencers and secure upstream, design-led specification Simplify our product portfolio and invest in d
Slide 52: Marley Roofing
SECTION . Marley Roofing Marshalls Capital Markets Event 2024 52
Slide 53: Strong recognisable brand
Strong recognisable brand
Slide 54: Most comprehensive roofing system on the market
Most comprehensive roofing system on the market Concrete tiles 1 Clay tiles 1 3 1 4 Timber battens 2 SolarTile® 3 2 2 Accessories 4 1 Roof coverings 2 Base layers 3 Marley 4 Accessories SolarTile® 5 Tools and contracting services 6 Warranty The only manufacturer to offer everything above the rafters
Slide 55: Marley Roofing snapshot
Marley Roofing snapshot Roofing share % Share of group revenue % Revenue by end market % Revenue split by product category 13% 37% 23% 23% 2023 £151M 61% 16% 77% 50% Roofing New housing Concrete tiles & fittings Other BUs Housing RMI Clay tiles & fittings Concrete and clay tiles Commercial & infrast
Slide 56: Focus on customers who value our capabilities
Focus on customers who value our unique set of capabilities Roofing value chain Key influencers on specification Manufacturing Distribution Contracting & installation End customer / user Local authorities & housing associations Builders merchants Design & build Building owner contractors Marley R
Slide 57: Marley Roofing: our winning proposition
Marley Roofing: our winning proposition Leading Best in class technical Carbon brands and design support leadership Unique market leading brand with 100 years of Most comprehensive pitched roofing system on First in market with Environmental Product heritage the market Declarations Best-known roofi
Slide 58: Tailwinds will fuel revenue growth in Roofing
Structural and regulatory tailwinds will fuel revenue growth in our Roofing business Water Near term growth tailwinds Landscaping Roofing Solar Management Bricks New housing – New housing accounts for 37% of our market exposure – Demand on labour availability offers the opportunity for a roof sys
Slide 59: RMI Housing strategic imperative
RMI Housing strategic imperative: defend heartlands & drive share in adjacencies How to win: our value creation levers Optimise profit in social RMI heartland • Build on our leading brand position, protecting specifications • Targeted investment of our salespeople on specification selling Drive
Slide 60: New housing strategic imperative
New housing strategic imperative: defend heartlands & drive share in adjacencies How to win: our value creation levers Leverage unique full roof offer to drive share in private new build market • Leverage solar roof system for regional and mid-size housebuilders • Access to roofing and solar cha
Slide 61: Case Study: North Ayrshire Council roof systems with solar
Case Study: North Ayrshire Council full roof systems with solar 5-year re-roofing and solar PV contract helping to support the client’s carbon neutral programme, whilst also tackling fuel poverty for tenants Minimum of 200+ properties per year, combination of new roofs and solar only installs Payb
Slide 62: Marley Roofing summary
Marley Roofing summary Defend heartlands & drive share in adjacencies Established, reputable & unique roof system proposition, including leading in- roof solar solutions Specification customers who value our unique set of capabilities and service Attractive tailwinds from new housebuilding and non-d
Slide 63: Viridian Solar
SECTION . Viridian Solar Marshalls Capital Markets Event 2024 63
Slide 64: Marshalls Capital Markets Event 2024
Marshalls Capital Markets Event 2024 64
Slide 65: Roof integrated solar photovoltaics
Roof integrated solar photovoltaics Marshalls Capital Markets Event 2024 65
Slide 66: Key end markets that value roof integrated solar
Key end markets that value the benefits of roof integrated solar New homes Social housing retrofit Marshalls Capital Markets Event 2024 66
Slide 67: Potential for a full solar system with our accessories
Potential for a full solar system with our accessories 1 2 3 4 1 Light is converted to 2 The electricity is 3 The generated 4 Clearline EV can electricity by the PV conditioned for use electricity is used in set the charging solar panels in the home by an the house or if not rate to match the invert
Slide 68: New patented solar fire safety product
New, patented solar fire safety product has application across all solar sectors Marshalls Capital Markets Event 2024 68
Slide 69: Roof integrated solar snapshot
Roof integrated solar snapshot Solar share % Share of group revenue % Revenue by end market % Revenue split by product category 4% 12% 1% 4% 4% 2023 £29M 96% 87% 92% Solar New housing In-roof solar Other BUs Housing RMI Inverters In roof Commercial & infrastructure ArcBox Market leading position in
Slide 70: Focus on customers who value our capabilities
Focus on customers who value our unique set of capabilities In roof solar value chain Key influencers on specification Contracting & Manufacturing Distribution End customer / user installation Electric wholesalers New build housing Viridian Solar Renewable wholesalers Solar roofing Architects & Pri
Slide 71: Proprietary system widely regarded as best in class
Proprietary system widely regarded as best in class All metal roofing kit with 3rd party Compliance assured assessment of durability Market leading wind resistance, achieved without roof modifications Marshalls Capital Markets Event 2024 71
Slide 72: Customers value our wrap around design service
Our customers value our market leading wrap around design service Marshalls Capital Markets Event 2024 72
Slide 73: Our ESG leadership is increasingly valued by customers
Our ESG leadership is increasingly valued by many customers Hohot Baotou Hebei Delingha Xining Xinghua Nanjing Ningbo Changsha Supply chain due diligence World first EPDs for Solar PV To Tier 5 (Polysilicon) Tier 1 & 2 Module and Solar Fixing Kit Tier 3 & 4 Tier 5 Marshalls Capital Markets Event 20
Slide 74: Tailwinds will fuel revenue growth for Solar
Structural and regulatory tailwinds will fuel revenue growth for our Solar business Water Near term growth tailwinds Landscaping Roofing Solar management Bricks New housing – >85% exposure to new housing sector – Ambition to build 1.5 million new homes in this parliament – Equals 8-9% p.a. increas
Slide 75: Solar adoption driven through regulation and opportunity (2015)
Solar adoption driven through regulation and the size of the opportunity 2015 Houses with solar Annual housebuilding • Solar on around 10% of new England and Wales homes prior to 2015 Scotland Marshalls Capital Markets Event 2024 75
Slide 76: Solar adoption driven through regulation and opportunity (2021)
Solar adoption driven through regulation and the size of the opportunity 2021 Houses with solar Annual housebuilding • Solar on around 10% of new England and Wales homes prior to 2015 • 2015 regulations in Scotland resulted in around 80% solar penetration Scotland Marshalls Capital Markets Event 20
Slide 77: Solar adoption driven through regulation and opportunity (2026)
Solar adoption driven through regulation and the size of the opportunity 2026 Houses with solar Annual housebuilding • Solar on around 10% of new England and Wales homes prior to 2015 • 2015 regulations in Scotland resulted in around 80% solar penetration • Ongoing transition to similar Scotland re
Slide 78: Roof integrated solar adoption and opportunity
Solar adoption driven through regulation and the size of the opportunity Roof integrated solar 2026 Houses with solar Annual housebuilding • Solar on around 10% of new England and Wales homes prior to 2015 • 2015 regulations in Scotland resulted in around 80% solar penetration, of which 80% are roo
Slide 79: Solar opportunity per 100,000 homes built
Solar adoption driven through regulation and the size of the opportunity Per 100,000 homes built 2026 80% with solar • Solar on around 10% of new homes prior to 2015 64,000 homes x 2kWp x £600/kWp • 2015 regulations in Scotland resulted in around 80% solar 64% with roof integrated solar Opportunity
Slide 80: Opportunities for additional growth
Opportunities for additional growth Increase attachment rate International opportunities for ArcBox for accessories Marshalls Capital Markets Event 2024 80
Slide 81: Case Study: Newland Homes - Solus
Case Study: Newland Homes - Solus A partnership since 2021 Marshalls Capital Markets Event 2024 81
Slide 82: Solar summary
Solar summary Leverage regulatory tailwinds to accelerate growth Market leader for the in-roof residential new build solar market Regulatory tailwinds driving market expansion Adjacent opportunities from solar Medium-term revenue growth target accessories and ArcBox + 8-12% market outperformance Mar
Slide 83: Marshalls Capital Markets Event 2024
Marshalls Capital Markets Event 2024 83
Slide 84: Marshalls Water Management
SECTION . Marshalls Water Management Marshalls Capital Markets Event 2024 84
Slide 85: Marshalls Capital Markets Event 2024
Marshalls Capital Markets Event 2024 85
Slide 86: Water Management offer
Water Management offer Surface Below ground Flood defence & One offer, delivering… drainage drainage retaining walls • End-to-end water management solutions – Below ground water management and sustainable drainage solutions – Linear drainage and surface water channel systems – Combined kerb and
Slide 87: Water Management snapshot
Water Management snapshot Water Management share % Share of group revenue % Revenue by end market % Revenue split by product category 10% 11% 2% 2023 45% £69M 55% 90% 87% Marshalls Water management New housing Below ground systems 25 -40% Below ground Infrastructure Other BUs Commercial & infrastruc
Slide 88: Focus on customers who value our capabilities
Focus on customers who value our unique set of capabilities Water management value chain Key influencers on specification Manufacturing Distribution Contracting & installation End customer / user Tier 1 contractors Water companies Tier 2 contractors Designers & Marshalls Civils merchants Civils con
Slide 89: Water Management: our winning proposition
Water Management: our winning proposition Leading Best in class technical Carbon brands and design support leadership Only UK manufacturer to offer an end-to- Dedicated in-house design team to support on Natural environmental protection through end integrated water management solution and off-site
Slide 90: Tailwinds will fuel revenue growth in water management systems
Structural and regulatory tailwinds will fuel revenue growth in our water management systems Water Near term growth tailwinds Landscaping Roofing Solar Management Bricks New housing – Existing 45% exposure to new housing sector – Industry move to 'Sealed' manhole systems that prevent ground pollut
Slide 91: Asset Management Programme 8 (2025 – 2030)
Asset Management Programme 8 (2025 – 2030) £35bn investment to reduce pollution and deliver greater resilience to the impact of climate change £10bn investment delivering 2,500 projects to reduce spills from storm overflows System upgrades to reduce spills from storm overflows by 44% (vs 2021 level
Slide 92: Pre-cast wastewater infrastructure market requires four product types
The pre-cast wastewater infrastructure market requires primarily 4 types of product Standard drainage Box culverts CSO tanks Precast water treatment Manholes, pipes, pumping Storm and foul sewers, Storage tanks for water Large stormwater tanks, stations and headwalls attenuation, and outfalls co
Slide 93: Water Management strategic imperative
Water Management strategic imperative: reposition to access growth & headroom Build brand presence and achieve market How to win: our value creation levers penetration in the attractive wastewater • Build Marshalls’ brand in infrastructure wastewater market space infrastructure sector • Invest in
Slide 94: Case Studies
Case Studies Established partnerships with major clients, including water companies, National Highways, Network Rail and the Environment Agency. Scottish Environmental Protection Agency, Aberdeen National Highways, M1 Carriageway and Junction Stormwater filtration, pollutant removal, and Improvemen
Slide 95: Water Management summary
Water Management summary Reposition to access growth & headroom High quality, full-service water management proposition Attractive tailwinds from new housebuilding, AMP8 wastewater infrastructure investment and ESG-driven purchase decisions Network opportunities for capacity and capability investme
Slide 96: Marshalls Bricks & Masonry
SECTION . Marshalls Bricks & Masonry Marshalls Capital Markets Event 2024 96
Slide 97: Marshalls Capital Markets Event 2024
Marshalls Capital Markets Event 2024 97
Slide 98: Marshalls Bricks leads in lower carbon bricks and walling
With over 60 years of experience, Marshalls Bricks leads the way in the manufacture of lower carbon bricks & walling solutions Facing brick Facing brick formats Walling stone Engineering brick Solid Perforated Frogged Vintage Creased Blocks Common brick Marshalls Capital Markets Event 2024 98
Slide 99: Lower carbon bricks
Lower carbon bricks Vibrant Colour-fast an extensive, rich palette modern pigments for excellent of colours & finishes colour consistency & longevity Lighter Laying times familiar perforated & frogged consistent with other brick designs reduce weight products Stronger Lower carbon high quality te
Slide 100: How Marshalls' bricks are made
Lower carbon bricks How Marshalls’ bricks are made: our production significantly reduces the energy input
Slide 101: Bricks & Masonry snapshot
Bricks & Masonry snapshot Bricks share % Share of group revenue % Revenue by end market % Revenue split by product category 8% 7% 5%5% 11% 20% 2023 £56M 60% 10% 83% 92% Bricks New housing Facing Other BUs Housing RMI Commons Facings, Commons & Engineering Bricks Commercial & infrastructure Engineeri
Slide 102: Opportunity to drive penetration with national and regional housebuilders
Marshalls has a significant opportunity to drive penetration and share gain with the largest national and regional housebuilders Builder #1 Builder #2 Just 4 years ago our customer base Builder #3 comprised >70% from just one top Builder #4 20 housebuilder Builder #5 Builder #6 Today we have estab
Slide 103: Focus on customers who value our capabilities
Focus on customers who value our unique set of capabilities Bricks value chain Key influencers on specification Manufacturing Distribution Contracting & installation End customer / user Housebuilders Builders merchants Contractors Marshalls Architects & Bricklayers designers Brick factors Housing a
Slide 104: Bricks & Masonry: our winning proposition
Bricks & Masonry: our winning proposition Leading Best in class technical Carbon brands and design support leadership Market maker in concrete bricks – created the Dedicated account managers and technical A Marshalls concrete brick has ~49% lower UK market support team for housebuilders embodied c
Slide 105: Tailwinds will fuel revenue growth for lower carbon bricks
Structural and regulatory tailwinds will fuel revenue growth for lower carbon bricks Water Near term growth tailwinds Landscaping Roofing Solar Management Bricks New housing – >80% exposure to new housing sector – Ambition to build 1.5 million new homes in this parliament – Equals 8-9% p.a. incre
Slide 106: Bricks & Masonry: accelerate concrete adoption
Bricks & Masonry: accelerate concrete adoption Increased penetration of facing bricks in How to win: our value creation levers national housebuilders in ‘new’ regions • Brand investment in Marshalls Bricks • Strategic marketing & commercial resources Grow facing brick share through targeted approa
Slide 107: Case Study
Case Study “We chose Marshalls concrete facing bricks because we wanted to retain as much of the original building façades as possible whilst restoring the majesty of this historical development." Project architect Marshalls Capital Markets Event 2024 107
Slide 108: Case Study
Case Study “Marshalls facing bricks not only allows us to choose from a range of colours and finishes, it also means we are incorporating an element of sustainability into the homes we build. This makes our sustainability goals easier to achieve and is at the heart of what we want to do as a busines
Slide 109: Bricks & Masonry summary
Bricks & Masonry summary Accelerate concrete adoption Market leading proposition for lower carbon bricks vs. clay and concrete competitors Trajectory of market share growth and housebuilder penetration over past 5 years, irrespective of market conditions Attractive tailwinds from new housebuilding
Slide 110: Focused and experienced business unit leadership teams
Focused and experienced business unit leadership teams Portfolio role Brand Powerhouses Growth Engines Viridian Marshalls Marshalls Marshalls Marley Water Landscaping Roofing Solar Bricks & Masonry Management Nick Platt Susan Barclay Stuart Elmes Paul Curtis Dean Harris Managing Director Managing Di
Slide 111: Investment case
SECTION Investment case Marshalls Capital Markets Event 2024 111
Slide 112: Group financial model
Group financial model Transform & Grow Strategy Capital Revenue allocation growth Shareholder value creation Return on Cash sales and conversion capital employed Transform & Grow Strategy drives revenue growth outperformance and operational leverage, which will deliver enhanced shareholder returns M
Slide 113: Revenue growth
Revenue growth Medium-term revenue growth expected to outperform the construction market Landscaping Roofing Building Group Cyclical recovery New housing targets Regulatory tailwinds Market share growth Medium-term market outperformance targets 1-3% 2-4% 4-6% 2-4% Marshalls Capital Markets Event 202
Slide 114: Return on sales and capital employed
Return on sales and capital employed Return on sales Return on capital employed 18% 16% 16% 16% 14% 15% 15% 14% 15% 14% 14% 12% 13% 12% 12% 10% 11% 10% 8% 8% 8% 6% 6% 4% 4% 2% 2% 0% 0% 2019 2021 2022 2023 Target 2019 2021 2022 2023 Target 2019 to 2022: Return on sales and ROCE are proforma percentag
Slide 115: Cash conversion
Cash conversion Adjusted operating cashflow conversion • Strong historic conversion of cash profit into operating 120% cash flow 100% 106% 97% 91% 90% • Strong profit conversion into cash targeted at similar 80% 80% rate in medium-term 60% • Growing profitability expected to be converted into 40% ca
Slide 116: Capital allocation policy
Capital allocation policy Clear policy focused on optimising shareholder value 1 2 3 4 5 Investment to Organic enhance Balance sheet Selective Dividends growth competitive deleveraging acquisitions advantage Capital investment £M* Guidance £20-30 – Maintain dividend cover of – Strong conversion of p
Slide 117: Shareholder value creation: investment case
Shareholder value creation: investment case Group positioned to Profit growth Highly cash Free cash flow Profitable growth outperform the delivered through generative de-levers increases construction market operational leverage business model balance sheet shareholder returns Attractive diversified
Slide 118: Summary
SECTION Summary Marshalls Capital Markets Event 2024 118
Slide 119: Our strategy: Transform & Grow
Best in class Our strategy: technical and Transform & Grow design support Customers Carbon who value our Leading leadership unique set of brands capabilities Business wide Leadership in ESG People, organisation enterprise excellence governance and standards and culture Marshalls Capital Markets Even
Slide 120: Each business to deliver against core strategic imperatives
Our Transform & Grow strategy requires each part of our business to deliver against core strategic imperatives Portfolio role Business units Strategic imperative Marshalls Landscaping Drive greater value from distinctive national model Brand Powerhouses Marley Roofing Defend heartlands & drive shar
Slide 121: Transform & Grow strategy: next stage of growth and value creation
Transform & Grow strategy The next stage of our growth and value creation Summary Attractive diversified portfolio Investing to enhance capability of businesses, exposed to scale markets productivity and optimise the inherent with long-term growth drivers and strengths in our nationwide network an
Slide 122: Our strategy: Transform & Grow targets
Our strategy: Transform & Grow 2-4% market outperformance 15% operating margin 90% cash conversion 0.5 -1.5x 2x pre-IFRS16 net debt to EBITDA dividend cover leverage target range £20-30m capital expenditure pa 15% return on capital employed
Slide 123: Q&A
SECTION Q&A Marshalls Capital Markets Event 2024 123