Breedon Group Plc · LSE:BREE
Breedon — Investor Day (November 2024)
67 slides from Breedon's investor day presentation, Nov 21, 2024
Slide 1: Breedon Group plc Capital Markets Event: Breedon 3.0
Slide 2: Breedon 3.0 Agenda
Slide 3: Presenting... Donna Hunt
Breedon Group ple Capital Markets Event 2024 Chair's introduction | Growth strategy | Sustainability | Expand | Breedon inthe US | Financial framework | Summary and questions | Appendix 2 Presenting... Donna Hunt, Group Sustainab
Slide 4: In attendance today...
By ereedon Group ple Capital Markets Event 2024 Chi ablecnet 1. Gyauhieaeaetiy, | Rei (bbeec: f Ameeamrase 5 | cnendalteettivork Nh einambrs In.attendance today... Za : we Mike Pearce, fe . ” Pat Gilroy, Managing Director Jude Lagan, Wing Directo! Great Britain itai Ireland / Cement Caroline Robert
Slide 5: Chair's introduction
- 2 i | Gown setegy | Soon ane Ea Breedon Group ple Capital Markets Event 2024 cs Chair’s introd Breedon intheWS | Financial mework | Summary and questions | Appendix = 4 ¥i » Amit Bhatiaeh a * ba f
Slide 6: Growth strategy: Evolution
Slide 7: To build where we live and work
BBB reedon Group ple Capital Markets Event 2024 ches nroductin [ERMMMEMMMMR sistansbity | Expand | Breedoninthe US | Frencelfameworke | Summary and uestions | Append 6 To build where we live and work... .. where we play and in between We are a leading vertically-integrated We supply the construction
Slide 8: Outstanding track record of sustainable growth
Breedon Group ple Capital Markets Event 2024 Chair's introduction Outstanding t Organic growth complemented by M&A Breedon Six bolt-on transactions Growth strategy Hope ‘ack record of sustainable growth Lagan Cemex Nine bolt-on | BMC UK assets |transactions 2011 2012! 2013! 2014 2015 2016 2017 2018
Slide 9: Our business is asset backed
Growth strategy | Sustainability | Expand | Breedon in the US BS sreedon Group ple Capital Markets Event 2024 Chair's introduction Our business is asset backed Strong local market positions c1.4 bn tonnes >350 sites Reserves and resources Aggregates x 2100 an Financial framework | Summary and questi
Slide 10: Supplying attractive end-markets
BS sreedon Group ple Capital Markets Event 2024 Chair's introduction | Growthstrateay | Sustainability | Expand | BreedonintheUS | Financial framework | Summary and questions | Appendix 9 Supplying attractive end-markets Long-term structural growth trends in infrastructure and housing Clear need to
Slide 11: Our people make the most material difference
BBB reedon Group ple Capital Markets Event 2024 charsintcauction MMMM sustsrabity | crmard | Bressonin ihe US | Fhandalfamework | Summary and questons | Apcerdx 10 Our people make the most material difference Our greatest asset Our first-class team : c.4,500 highly engaged colleagues Entrepreneurial
Slide 12: Executing our growth strategy
By ereedon Group ple Capital Markets Event 2024 Chei’sintocucton MMMM susteibity | Exeend | BreedonintheUS | Financial framework | Summary and questions | Appendix 11 Executing our growth strategy Significant progress since 2021 What we did = Clear growth strategy to = Reported record revenue and pr
Slide 13: Evolving our strategy: Breedon 3.0
BJ creedon Group ple Capital Markets Event 2024 Chei’sinrecucton MMMM susteinabity | Expand | Breedon nthe US | Financial framework | Summary anduestons | Appendix 12 Evolving.our strategy: Breedon 3.0 Virtuous circle of enhancement EXPAND _ "IMPROVE
Slide 14: Sustainability: Upgraded ambition
Slide 15: Established sustainability framework
Breedon Group ple Capital Markets Event 2024 Established sustainability framework Chair's introduction | Growth strategy | Sustainability Focused on our areas of most material importance and impact Planet 2030 target 30% reduction in gross carbon intensity per tonne cementitious product (from 2005 b
Slide 16: Planet: Further reduction in carbon intensity
By ereedon Group ple Capital Markets Event 2024 Chai’s introduction | Growth svatcoy [EEMMEMIMIMM Econd | Breedon inthe US | Financial framework | Summary and questions | Anpendx 15 Planet: Further reduction in carbon intensity Making a material difference to the planet a Our initial progress Curren
Slide 17: Definitely want this: Please make the whole chart blue
Definitely want this: Please make the whole chart blue
Slide 18: Places: Improving sustainability of our products
Sustainability | Expand | Breedon inthe US | Financial framework | Summary and questions | Appendix 7 Breedon Group ple Capital Markets Event 2024 Chair's introduction | Growth strategy Places: Improving sustainability of our products on Making a material difference to the built environment s “8 203
Slide 19: Principles: Validation and recognition
Breedon Group ple Capital Markets Event 2024 Sustainability Chair's introduction | Growth strategy Expand Breedon inthe US | Financial framework Principles: Validation and recognition Operating responsibly and transparently Committed to transparent disclosure Our fundamental operating Principles ens
Slide 20: Companies taking action - Science Based Targets Initiative
Companies taking action - Science Based Targets Initiative
Slide 21: Upgraded target: Generating social value
Sustainability | Expand | Breedon inthe US | Financial framework | Summary and questions | Appendix 20 Breedon Group ple Capital Markets Event 2024 Chair's introduction | Growth strategy Upgraded target: Generating social value Replies Embedding a consideration of social value across our business '@
Slide 22: Upgraded target: Expanding product range
Breedon Group ple Capital Markets Event 2024 Chair's introduction | Growth strategy | Sustainability | Expand | Breedon inthe US | Financial framework | Summary and questions | Appendix 21 Upgraded target: Expanding product range places —/> Contributing to a more sustainable built environment ® Bree
Slide 23: Progress and upgrading targets
FFB preecion Group ple Capital Markets Event 2024 Seances Ieee are eee a So ctencetrerewacc [| Sirnecjond qvesvons | Append 22 ogress| and upgrading 23% reduction in absolute gross scope 1 and 2 greenhouse gas emissions, and scope 3 emissions from purchased clinker and cement by 2030 £500 million cu
Slide 24: Expand: M&A strategic priorities
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Slide 25: Why M&A: A bigger and better Breedon
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Slide 26: Scale up our US business; targeted vertical integration
BS sreedon Group ple Capital Markets Event 202. cale up our US business Targeted vertical integration Aggregates anywhere we are
Slide 27: Priority 1: US scale-up
Breedon Group ple Capital Markets Event 2024 Chair's introduction | Growth strategy | Sustainability |] Expand | Breedon inthe US | Financial framework | Summary and questions | Appendix 26 Priority 1;US scale-up US construction materials markets; high relative growth, highly fragmented High relativ
Slide 28: Priority 1: US scale-up opportunity
— BS sreedon Group ple Capital Markets Event 2024 Chair's introduction | Growthstrateoy | Sustainability |//Expand)|| Breedoninithe US | Financial framework | Summary and questions | Appendix 27 Priority 1; US scale-up Our most significant opportunity for sustainable growth Ambition for the next dec
Slide 29: Priority 2: Vertical Integration
By reedon Group ple Capital Markets Event 2024 Chairs introduction | Growth strateay | Susteinabiity | Expand | Breedon inthe US | Financial framework | Summary and questions | Appendx 28, Priority 2: Vertical Integration Pull through impact of key downstream products 6.0 million tonnes 0.9 million
Slide 30: Vertically-integrated bolt-ons driving returns
Ba Breedon Group ple Capital Markets Event 2024 Chair's introduction | Growth strategy | Sustainability | Expand | Greedon inthe US | Financial framework | Summary and questions | Appendix 29 Priority 2: Vertical Integration Vertically-integrated bolt-ons driving returns Thomas Bow Surfacing busines
Slide 31: Significant M&A potential across products and platforms
Breedion Group ple Capital Markets Event 2024 Chei’s introduction | Growth strategy | Sustahnabity MEMBBRBIE| Breedon inthe US | Financial framework | Summary and questions | Appendix 30 . . Z . l . t . Priority 2: Vertical integration Significant M&A potential; varying opportunities across our prod
Slide 32: What this looks like: strategic bolt-on deals
By reedon Group ple Capital Markets Event 2024 Chairs introduction | Growth strateay | Sustainability | Breedon inthe US| Financial framework | Summary and questions | Appendx 3] What this Strategic bolt-on deals in Particular strategic focus \ looks like? existing or adjacent markets on regions whe
Slide 33: Healthy M&A pipeline
PS Breedon Group ple Capital Markets Event 2024 Ghd inffediietion | ci ategy Healthy M&A pipeline A steady stream of opportunities Our deal universe Deal type Bolt-on Platform Transformational Value Up to £100m £100m - £300m £300m+ Sustainability Expand Breedon Relationships Financial framework | Su
Slide 34: Fundamental screening criteria
PS Breedon Group ple Capital Markets Event 2024 Chairs introduction | Growth strategy | Sustainabiity [iEXpene Fundamental screening criteria Pursuing transactions selectively Markets Assets Synergies People Breedon in the US | Financial framework | Summary and questions | Appendx 33 n i Customers F
Slide 35: Valuation discipline
Breedon inthe US | Financial framework | Summary and questions | Appendix 34 yg Breedon Group ple Capital Markets Event 2024 (Chair's introduction | Growth strategy | Sustainability /(IEXeenal Valuation discipline Valuation methodology underpinned by our returns requirements , 5 Customers Financial
Slide 36: Access to diversified sources of debt capital
Access to diversified sources of debt capital, with a supportive lender group Growth constrained by leverage, not liquidity Cash generative model with compounding cash flows £150M to £175m
Slide 37: Breedon in the US: BMC and beyond
* “Breedon in the US malig, | Starman al Markets Event 2024 Chair's introduction | Growth strategy | Sustainability | Expand a e We Breedon inthe
Slide 38: Breedon's third platform
Breedon Group ple Capital Markets Event 2024 ~ Summary andl oe Breedon’s third platform — es, Strong local market position BMC replicates the Breedon model: ~ Vertically-integrated model ~ Operated by a first-class team ~ Occupying a top three market position ~ Ina fragmented market ~ With a diversi
Slide 39: BMC at a glance
By ereedon Group ple Capital Markets Event 2024 Chair's troduction | Growth strategy | Sustainability | Expand [RRM Financial framework | Summary and questions | Anpendk 38, BMC at.a glance Vertically-integrated model operated by 580 colleagues Product mix Sales mix Aggregates ~ 2023 short tons*: ¢.
Slide 40: Close cultural alignment
Breedon in the US Financial framework | Summary and questions | Appendix 39 PAM sreedon Group ple Capital Markets Event 2024 Chair's introduction | Growth strategy | Sustainabilty | Expand Close cultural alignment Sharing the same values Family business heritage Entrepreneurial and agile First-class
Slide 41: Prioritising health, safety and wellbeing
BS sreedon Group ple Capital Markets Event 2024 Prioritising health, safety and wellbeing Aligning our safety culture Breedon safety policy adopted Safety review completed Improvements put in place and ongoing Train - Reinforce - Train - Reinforce IobP SAFE IbP SOLID i) ) | BMC INC.
Slide 42: Enhancing sustainability
Breedon Group ple Capital Markets Event 2024 Chair's introduction | Growth strateay | Sustainability Enhancing sustainability — Working with our suppliers to reduce our CO, emissions BMC only uses lower _ carbon CEM II cement» oe bh =, CarbonCure technology - Lowering CO, emissions PR CARBON = Reduc
Slide 43: BMC locations and acquired businesses
_ Base Rock 2 Minerals ae Ready Mix - Oldcastle Lincoln County E Materials APAC Sand & Gravel . Eastern Missouri 3 € S&S Quarries bE Stewart Concrete Products Spencer Ready Mix ~ Stewart Morrison Redi-Mix . River Rock Ready Mix Mark Twain Ready Mix © Eureka Materials * Blue Grass Ready Mix Raineri B
Slide 44: Strong track record of growth
BAR ereedon Group ple Capital Markets Event 2024 Chai's introduction | Growth strategy | Sustainabiity | expand | BreedonintheUS | Financial framework | Summary and questions | Appendix 43 Strong track record of growth Familiar profile 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 $56m_ e@
Slide 45: US beachhead: expanding into target states
Breedon Group ake Cantal Maniaky Een 2004 Chair's introduction | -Slowth svsteoy= |) Sustamemeh [ease ne al Financial framework | Summary and questions | Appendix 44 US beachhead Expanding into target states for growth Our growth priorities - Aggregates-led vertical integration opportunities = Diver
Slide 46: Attractive Midwest end-markets
BS sreedon Group ple Capital Markets Event 2024 Chair's introduction | Growth strategy | Sustainability | Expand | BreedomintheUS || Financial framework | Summary and questions | Appendix 45 Attractive Midwest end-markets End-markets supported by long-term structural growth drivers Midwest heavy mat
Slide 47: All Midwest end-markets forecast to grow
BS sreedon Group ple Capital Markets Event 2024 Chair's introduction | Growth strategy | Sustainability | Expand | BreedomintheUS || Financial framework | Summary and questions | Appendix 46 All Midwest.en Growth expected in all segments d-markets forecast to grow Seance 150 Category = Residential 1
Slide 48: Target markets: Aggregates production
Breedon Group ple Capital Markets Event 2024 Chair's introduction | Growth strategy | Sustainability | Expand | BreedonintheUS | Financial framework | Summary and questions | Append Target markets: Aggregates production >2%,GB GDP comparable Midwest 408m short tons Nebraska |Kansas lowa Southillinoi
Slide 49: Rising Midwest materials consumption
| .| Breedon Group ple Capital Markets Event 2024 Chair's introduction | Growth strategy | Sustainability | Expand | BreedonintheUS | Financial framework | Summary and questions | Appendix 48 Rising Midwest materials consumption Returning to pre-global financial crisis levels Midwest average aggrega
Slide 50: Significant Midwest consolidation opportunity
BreadonintheUS | Financial framework | Summary and questions | Appendix By ereedon Group ple Capital Markets Event 2024 Chai’s introduction | Growth strategy | Sustainabiity | Expand Significant Midwe Over 200 independent aggregates producers st consolidation opportunity US Midwest aggregates produc
Slide 51: Opportunity to diversify into asphalt
Financial framework | Summary and questions | Appendix Breedon in the US Breedon Group ple Capital Markets Event 2024 Chairs introduction | Growth strategy | Sustainabiity | Expand Opportunity to diversify into asphalt Asphalt market dominated by independent producers US Midwest asphalt producer lan
Slide 52: Ready-mixed concrete remains highly fragmented
BreadonintheUS | Financial framework | Summary and questions | Appendix By preedon Group ple Capital Markets Event 2024 Chai’s introduction | Growth strategy | Sustainabiity | Expand Ready-mixed concrete remains highly fragmented Less than 10% produced by the majors US Midwest ready-mixed concrete s
Slide 53: Opportunity in the next decade
roup plc Capital Markets Event 2024 Chair's introduction F.E. Breckenridge Material company founded Growth strategy | Sustainabjlly Expand | BreedonintheUS || Financial framework portunity in the next decade 2013-2023 17 acquisitions Strong management team established Healthy balance sheet maintaine
Slide 54: Financial framework: Thoughtful capital allocation
* Rey i . . y Se iJ rf - “! 2 ky Ye ve. c © Pi ereedon or Group ple Capital Markets Event 2024.7 * Chair's introduction | Growth streteoy | Siseanebilty | Expahd. |. ‘BreBdon isthe US Summary and questigns | Appendie Ps * Tag “vate, Sat oY. sR - Financial framework: Thoughtful capital alle Qca James
Slide 55: Connecting strategy to capital allocation
Breedon Group ple Capital Markets Event 2024 Connecting, strategy to capital allocation Financial framework provides strategic flexibility EXPAND Chair's introduction | Growth strategy IMPROVE Sustainability | Expand Breedon in the US Financial framework FINANCIAL FRAMEWORK Balance growth with retur
Slide 56: Our capital allocation model
Breedon Group ple Capital Markets Event 2024 Chair's introduction | Growth strategy | Sustainability | Expand | Breedon inthe US | Financial framework | Summary and questions | Appendix 55. Our capital allocation model Investment as a differentiator through the cycle AA Wa A Maximise value through I
Slide 57: Delivering our strategy
Summary and questions | Appendx 56 Financial framework By reedon Group ple Capital Markets Event 2024 Chair's introduction | Growth strategy | Susteinabilty | Expand | Breedon in the US Delivering our strategy Our progress over the past three years Outcome | Target = Growth Financial discipline Outp
Slide 58: Our evolving financial framework
Financial framework | Summary and questions | Appendix 57, By ereedon Group ple Capital Markets Event 2024 Chai’s introduction | Growthstrategy | Sustainability | Emend | Sreedon nthe US Our evolving financial framework Financial metrics aligned to our strategy Growth Revenue P Outperforms our marke
Slide 59: Summary and closing remarks
Summary and closing remarks.
Slide 60: Summary and closing remarks
Breedon Group ple Capital Markets Event 2024 Chairs introduction | Growth strateay | Sustainability | Expand | BreedonintheUS | Financial framework | Summary andauestions | Appendix 59 Summary and closing remarks EXPAND | IMPROVE
Slide 61: Your questions
Slide 62: Appendix
A = Ba Na ES TOL WOE 2: ATE
Slide 63: Breedon pro forma 2023 sales mix
Grow Appendx 62 egy | Sustainability | Expand | BreedonintheUS | Financial framework | Summary Breedon Group ple Capital Markets Event 2024 Chair's introductios Breedon proforma* 2023 Sales mix Region a Division Customer Product! mUK 80% @ Great Britain 59% M@Infrastructure c.50% @ Aggregates 30% Ro
Slide 64: Our Five Alive rules
Breedon Group ple Capital Markets Event 2024 Chair's introduction | Growth strategy | Sustainability | Expand | Breedon intheUS | Financial framework | Summary and questions | Appendix | 63 Our Five Alive rules Our goal is simple ... everyone goes home safe and well. Our Five Alive rules 1 2 3 4 5 m
Slide 65: Making a material difference
Breedon Group ple Capital Markets Event 2024 Chair's introduction | Growth strategy | Sustainability | Expand | Breedon intheUS | Financial framework | Summary and questions | Appendix | 64 Making.a material difference Vision To be a leading, vertically-integrated, international construction materia
Slide 66: Glossary
Breedon Group ple Capital Markets Event 2024 CEM II Covenant Leverage Cubic metre/ cubic yard EBIT Free cash flow GB GDP Group Invested capital Ireland Leverage Like-for-like Chair's introduction Carbon capture and storage CEM II limestone cement; consists of clinker, minor additional constituents a
Slide 67: Forward looking statement
Breedon Group ple Capital Markets Event 2024 Chair's introduction | Growth strategy Forward looking statement The information contained in this presentation document (the “presentation”, which term includes any information provided verbally in connection with this presentation document) does not con