Slide 1: Third Quarter Results Presentation
FY2023 Third Quarter Results Presentation Results to April 30, 2024
Slide 2: Legal Disclaimer
Legal Disclaimer Cautionary note on forward-looking statements Certain information included in this presentation and discussed on the conference call that this presentation accompanies is forward-looking, including w ithin the meaning of the Private Securities Litigation Reform Act of 1995, and invo
Slide 3: 01 Highlights and introduction
01 Highlights and introduction Kevin Murphy, CEO •Kevin Murphy, CEO
Slide 4: Third quarter financial highlights
Third quarter financial highlights Net sales ($m) Adjusted operating profit* ($m) Adjusted EPS – diluted* 747 7,284 7,140 7,308 657 674 $2.50 $2.32 559 $2.20 5,916 $1.78 2021 2022 2023 2024 2021 2022 2023 2024 2021 2022 2023 2024 +23.1% (2.0%) +2.4% +33.6% (12.0%) +2.6% +40.4% (12.0%) +5.5% Strong e
Slide 5: Balanced approach to US end markets
Balanced approach to US end markets Q3 2024 Q3 2023 % of US net US net sales US net sales sales* growth/(decline) growth/(decline) Residential 52% +1% (6%) Non-residential 48% +4% +3% Commercial 33% +5% +2% Civil/Infrastructure 8% +6% +2% Industrial 7% (2%) +13% 100% +2.2% (1.6%) Broad improvement a
Slide 6: USA third quarter net sales
USA third quarter net sales Q3 2024 Q3 2023 % of US net Customer group net sales net sales sales* growth/(decline) growth/(decline) Residential Trade Plumbing 18% +1% (11%) HVAC 11% +4% (2%) Residential Building and Remodel 14% +1% +3% Residential Digital Commerce 8% (12%) (15%) Waterworks 21% +7% F
Slide 7: 02 Financial review
02 Financial review Bill Brundage, CFO •Kevin Murphy, CEO
Slide 8: Third quarter financial highlights
Third quarter financial highlights $m (except per share amounts) Q3 2024 Q3 2023 Change Net sales 7,308 7,140 +2.4% Gross margin 30.5% 30.0% +50 bps Adjusted operating profit* 674 657 +2.6% Adjusted operating margin* 9.2% 9.2% Flat Adjusted earnings per share – diluted* $2.32 $2.20 +5.5% Adjusted EB
Slide 9: Segment financial highlights
Segment financial highlights $m Q3 2024 Q3 2023 Change Net sales US 6,974 6,827 +2.2% Canada 334 313 +6.7% Total net sales 7,308 7,140 +2.4% Adjusted operating profit* US 685 664 +3.2% Canada 6 7 (14.3%) Central and other costs (17) (14) Total adjusted operating profit 674 657 +2.6% * The Company us
Slide 10: Year to date financial highlights
Year to date financial highlights $m (except per share amounts) YTD 2024 YTD 2023 Change Net sales 21,689 21,896 (0.9%) Gross margin 30.4% 30.2% +20 bps Adjusted operating profit* 1,967 2,103 (6.5%) Adjusted operating margin* 9.1% 9.6% (50) bps Adjusted earnings per share – diluted* $6.72 $7.07 (5.0
Slide 11: Cash flow – Year to date
Cash flow – Year to date $m YTD 2024 YTD 2023 Adjusted EBITDA* 2,109 2,247 Working capital 20 187 Interest and tax (667) (685) Other items 45 57 Operating cash flow 1,507 1,806 Capex (263) (361) Proceeds from the sale of assets 30 3 Free cash flow* 1,274 1,448 Strong cash generation continues * This
Slide 12: Capital allocation
Capital allocation 1. Organic growth 2. Dividends 3. Acquisitions 4. Surplus capital returns Working capital • Quarterly dividend of $0.79 • Eight completed since • $421m share repurchases per share, an increase of 5% August 1, 2023 completed in fiscal year to date • Inventory position now over the
Slide 13: Sequential performance
Sequential performance FY23 FY24 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Organic revenue growth / +12.7% +2.7% (2.5%) (5.3%) (4.9%) (3.7%) (0.9%) (decline)* Sequential improvement in organic trends * Management evaluates organic revenue as it provides a consistent measure of the change in revenue year-on-year. Organic
Slide 14: FY2024 Guidance
FY2024 Guidance Prior 2024 Guidance Updated 2024 Guidance Net sales* Broadly flat Broadly flat Adjusted operating margin** 9.2% - 9.8% 9.2% - 9.6% Interest expense $190 - $210 million $175 – $185 million Adjusted effective tax rate** Approximately 25% Approximately 25% Capital expenditures $400 - $4
Slide 15: 03 Closing remarks
03 Closing remarks Kevin Murphy, CEO •Kevin Murphy, CEO
Slide 16: Closing remarks
Closing remarks Thank you to our associates. 1. Continued execution in third quarter with the year progressing largely as expected. 2. Fiscal 2024 guidance reflects continued volume growth and resilient gross margin despite the impact of continuing mild deflation expected for the remainder of the fi
Slide 17: Join us for Q&A
Join us for Q&A |e
Slide 18: 04 Appendix
04 Appendix •Kevin Murphy, CEO
Slide 19: Leading positions in highly fragmented North American markets
Leading positions in highly fragmented North American markets ~75% of revenue generated from #1 or #2 market positions Residential Trade Plumbing HVAC $31b market 17% Share #2 Market Position ~$70b 5% Share $30b revenue with a market #3 Market Position Residential Building and Remodel $25b $30b mark
Slide 20: Reconciliation of Net Income to Adjusted Operating Profit and Adjusted EBITDA
Reconciliation of Net Income to Adjusted Operating Profit and Adjusted EBITDA Three months ended Nine months ended April 30, April 30, (In millions) 2024 2023 2022 2021 2024 2023 Net income $443 $336 $546 $369 $1,284 $1,305 Income from discontinued operations (net of tax) — — — 3 — — Income from con
Slide 21: Net Debt:Adjusted EBITDA reconciliation
Net Debt:Adjusted EBITDA reconciliation Net debt comprises bank overdrafts, bank and other loans and derivative financial instruments, excluding lease liabilities, less cash and cash equivalents. Long-term debt is presented net of debt issuance costs. A rolling 12-month adjusted EBITDA is used in th
Slide 22: Adjusted EBITDA (Rolling 12-month) reconciliation
Adjusted EBITDA (Rolling 12-month) reconciliation Adjusted EBITDA is net income before charges/credits relating to depreciation, amortization, impairment and certain non-GAAP adjustments. Twelve months ended (In millions) April 30, 2024 2023 Net income $1,868 $1,885 Loss from discontinued operations
Slide 23: Reconciliation of Net Income to Adjusted Net Income and Adjusted EPS-Diluted
Reconciliation of Net Income to Adjusted Net Income and Adjusted EPS-Diluted Three months ended Nine months ended April 30, April 30, 2024 2023 2022 2021 2024 2023 (In millions, except per share amounts) per share(1) per share(1) per share(1) per share(1) per share(1) per share(1) Net income $443 $2
Slide 24: Thank you
Thank you # FERGUSON