Slide 1: Interim Results: 6 months to 30 September 2021
Interim Results Click to edit Master title style 6 months to 30 September 2021 Inspiring Living Spaces
Slide 2: Introduction
Click to edit Master title style Introduction Nick Kelsall, Chief Executive Officer
Slide 3: Highlights
Click to edit Master title style Highlights Sustained outperformance leading to record underlying operating profit £200.9m Revenue1 +18.4% Increased RMI activity in the UK and SA markets & also winning market share £22.0m Underlying Operating Profit +26.4% Revenue +18.4% on a constant currency
Slide 4: Financial Review
Click to edit Master title style Financial Review James Eyre, Chief Financial Officer
Slide 5: Income Statement
Click IncometoStatement edit Master title style H1 H1 H1 % FY Sept 2021 Sept 2020 Sept 2019 v Sept Mar 2021 £m £m £m 2019 £m Revenue 200.9 135.3 181.2 +18.4%4 324.2 Underlying1 operating profit 22.0 12.8 17.4 +26.4% 33.8 Margin 11.0% 9.5% 9.6% 10.4% Finance charges – cash (1.1) (2.1) (1.8) (3.2) Und
Slide 6: Income Statement – Key Bridges
Click IncometoStatement edit Master – Keytitle style Bridges Revenue Underlying operating profit 11.7 0.6 - 5.0 - 19.5 6.5 £m 4.5 £m 200.9 22.0 181.2 0.5 17.4 Sept '19 Currency Pro-rating 2 UK SA Sept '21 Sept '19 Currency UK SA Sept '21 Revenue1 Underlying operating profit / ROS%3 9.3% +18.4% 200.9
Slide 7: Tax, Earnings & Dividends
Click to edit &Master Tax, Earnings title style Dividends Diluted underlying EPS1 (pence) Underlying1 Reported H1 H1 H1 FY H1 H1 H1 FY Sept Sept Sept Mar Sept Sept Sept Mar 2021 2020 2019 2021 2021 2020 2019 2021 31.1 £m £m £m £m £m £m £m £m 20.0 15.1 10.6 Sep-21 Sep-20 Sep-19 Mar-21 FY Profit befor
Slide 8: Cashflow – H1
Click to edit Cashflow – H1Master title style Replenishment of Inventory H1 H1 H1 FY Sept Sept Sept Mar 2021 2020 2019 2021 £m £m £m £m Cash conversion1 252% Underlying EBITDA 23.8 14.9 20.6 37.9 174% Working capital (19.3) 19.9 (3.1) 21.8 97% Depreciation of right of use assets 2.1 2.1 2.2 4.0 34%
Slide 9: Strong Balance Sheet
Click Strongto edit Master Balance Sheet title style £m Net cash / (debt) 10.5 1.0 Sep-21 Sep-20 Sep-19 Mar-21 Net cash £1.0m -7.3 (March 21: £10.5m net cash, Sept 19: £41.1m net debt) -41.1 times Leverage – Net debt to underlying EBITDA * 0.9 Nil leverage – significant liquidity & funding headroom
Slide 10: UK Pension Scheme Update
Click to edit UK Pension Master Scheme title style Update IAS 19R Assets, Liabilities & Membership Mar-14 Mar-15 Mar-16 Mar-17 Mar-18 Mar-19 Mar-20 Sep-20 Mar-21 Sep-21 IAS19R deficit lower at £6.1m (March 2021: £18.3m) 500 10000 Assets increased by £12.7m to £410.5m 450 9500 (March 2021: £397.8
Slide 11: Operating Review
Click to edit Master title style Operating Review Nick Kelsall, Chief Executive Officer
Slide 12: Key Messages
Click to edit Master title style Key Messages Excellent H1 performance Record first half outperformance Leading customer proposition & multi-channel exposure Operating model, supply-chain, infrastructure & stock availability driving share gains UK Solid H1 revenue momentum maintained I
Slide 13: Compelling Business Model
Click to edit Master title style Compelling Business Nick Kelsall, Chief Executive Officer Model
Slide 14: Compelling Business Model – Norcros DNA; Key Driver of Outperformance
Click to edit Compelling MasterModel Business title style – Norcros DNA; Key Driver of Outperformance Focused, flexible & capital light operating model NEW PRODUCT Experienced management EXPERIENCED DEVELOPMENT MANAGEMENT Market leading positions & brands ASSEMBLY CHANNEL Group scale advanta
Slide 15: Continued NPD Investment Driving Differentiation
Click to edit Compelling MasterModel Business title style – Continued NPD Investment Driving Differentiation Omnicare Ultra New upgraded WRAS Launch of instructional Easy-to-install Ultra and approved Revo – dual purpose videos Ultra+. PROBOIL.2X, with new handrail & storage ProTrad Hot water tap In
Slide 16: China – Well Developed & Leading Supply Chain Infrastructure
Click to edit Compelling MasterModel Business title style – Well Developed & Leading Supply Chain Infrastructure Main suppliers Suzhou √ √ Representative office (RO) Headcount China Zhongshan √ √ Ningbo √ √ Shanghai √ √ No RO √ √ >30 >120 Focused & Flexible Supply Chain Across China – Source of Comp
Slide 17: Synergies & Collaboration – Wide Ranging & Meaningful
Click to edit Compelling MasterModel Business title style – Synergies & Collaboration – Wide Ranging & Meaningful Collaboratory branding winning new accounts Leveraging group reach to achieve greater penetration of housebuilders Group broad coverage leveraging channel Joint product development devel
Slide 18: Increasing ESG Focus & Momentum
Click to edit Compelling MasterModel Business title style – Increasing ESG Focus & Momentum Our commitment to ESG better aligns us to our larger consumer facing customers Environment Triton awarded Carbon Trust standard Carbon Trust assessment rollout across group to establish benchmark to bui
Slide 19: Business Review
Click to edit Master title style Business Review Nick Kelsall, Chief Executive Officer
Slide 20: UK Operations
UK Operations Click to edit Master title style Nick Kelsall, Chief Executive Officer
Slide 21: UK Revenue Buoyant & Strong Export Recovery
Click to edit– Master UK Revenue Buoyant title style & Strong Export Recovery UK Market % Revenue Change1 – H1 FY22 v H1 FY20 Overall UK Export 31.5% 30.2% Strong revenue growth – share gains across major shower categories 34.0% 37.9% 37.4% Excellent performance – share gains across all channels & e
Slide 22: UK – Resilient Performance in Unprecedented Period
Click to edit Master UK – Resilient title in Performance style Unprecedented Period Revenue Underlying Operating Profit2 £220.2m 12.3 £26.9m 32.8 15.0 24.1 £130.8m £17.0m £111.3m1 7.3 17.6 38.2 6.1 £93.7m 9.3 £12.5m 20.7 5.6 14.2 £10.8m 8.3 14.0 43.3 11.3 6.5 22.4 13.0% 12.2% 11.5% 10.1 10.8% 20.3 1
Slide 23: South Africa Operations
Click to edit Master title style South Africa Operations Nick Kelsall, Chief Executive Officer
Slide 24: South Africa – Retail Driven Recovery; Commercial Market Subdued
Click South to edit– Master Africa title Recovery; Retail Driven style Commercial Market Subdued % Revenue Change1 H1 FY22 v H1 FY20 £ - Reported Constant Currency 2 10.9% 20.0% Construction activity continues to be led by RMI & residential new builds 23.5% 34.0% Ongoing residential renovation deman
Slide 25: South Africa – Resilient Performance in Unprecedented Period
Click South to edit– Master Africa Resilienttitle style in Unprecedented Period Performance Revenue1 Underlying Operating Profit1 £109.9m £7.2m 18.5 13.2 £5.0m £70.1m £4.4m 20.2 £58.4m2 12.8 11.6 8.2 £46.0m 7.4 8.1 11.3 £2.2m 11.2 5.4 8.8 58.0 7.3% 7.1% 6.6% 37.8 4.8% 28.2 23.7 H1 Sept 19 H1 Sept 20
Slide 26: South Africa – Leading Market National Footprint With Further Growth Opportunities
Click South to edit– Master Africa A Markettitle styleNational Footprint With Further Growth Opportunities Leading TAF – national coverage ~ 32 company stores and 2 franchises TAL – strategically positioned manufacturing plants HoP – 7 branches; expansion opportunities House of Plumbing – 4 br
Slide 27: Group Outlook & Strategy
Click to edit Master title style Group Outlook & Strategy Nick Kelsall, Chief Executive Officer
Slide 28: Outlook – Market Indicators
Click to–edit Outlook Master Market title style Indicators UK – Decade high housing activity levels South Africa – Consumer led RMI recovery Key Housing Stats Dwellings Completed & Plans submitted Sources: GOV.UK (Oct) & HMRC (Oct) 2021 Source: SA stats (Oct) 2021 35,000 55,000 500,000 450,000 30,00
Slide 29: Group Strategy – Vision Remains Valid
Click Group to edit Master Strategy – Visiontitle styleValid Remains 2025 VISION “A leading supplier of bathroom and kitchen products in selected geographies, offering strong brands, contemporary designs, trusted quality, outstanding service, innovation and a wide product range.” STRATEGIC TARGETS £
Slide 30: Group Strategy – Consolidation Opportunity in Fragmented UK Product Markets
Click Group to edit Master Strategy title style – Consolidation Opportunity in Fragmented UK Product Markets UK Bathroom – Selective Markets @ MSP £220m £221m £440m £350m £405m £522m £2.2bn 100% 90% 80% 70% 60% Rest of Market 50% Top Players 40% 30% 20% 10% 0% Showers Enclosures & Trays Adhesives Ti
Slide 31: Group Strategy – Complementary Acquisitions Creating Value
Click to Group edit Master Strategy title styleAcquisitions Creating Value – Complementary Consolidator in Large and Fragmented Markets Bathroom Many opportunities across product sub sectors and channels Ventilation Shower trays O Shower panels & drains N Significant organic and acquisition gr
Slide 32: Summary & Key Messages
Click to edit Summary & KeyMaster title style Messages Excellent H1 performance – record profits Market outperformance – share gains & new business wins Compelling business model – focus & flexibility Supply chain infrastructure, service & stock availability Inflationary and supply chain c
Slide 33: Appendix
Click to edit Master title style Appendix
Slide 34: Investment Case – Record Track of Sustained Growth
Click to edit Investment Master Case title – Track styleof Sustained Growth Record Underlying Operating Profit (2) £m Revenue(1) £m 400 42 342.0 350 331.0 324.2 37 Overseas UK South Africa 300.1 UK South Africa Rest of World 34.4 33.8 32.3 300 271.2 32 235.9 27.4 250 218.7 222.1 27 210.7 23.8 196.1
Slide 35: Investment Case – Record Track of Sustained Progress
Click to edit Investment Master Case title – Track styleof Sustained Progress Record pence pence Diluted underlying EPS (p) Dividends per share (p) 35 9.0 Interim Final 8.4 8.2 31.7 31.1 7.8 29.5 8.0 30 28.2 7.2 27.8 27.8 7.0 6.6 25 22.0 6.0 5.6 21.0 5.1 20 19.0 4.6 18.0 5.0 16.0 4.2 4.0 3.6 15 3.1
Slide 36: Business Overview
Click to edit Business Master title style Overview SNAP figures Group H1 % Revenue Market leader in the manufacture and marketing of showers in the UK £30.9m 15.4 Market leading supplier of shower enclosures and trays £29.1m 14.5 Leading manufacturer and supplier of taps, mixer showers, bathroom acc
Slide 37: UK Channels – Trade & Strong Demand in Independent Sector
Click to edit–Master UK Channels title style in Trade & Strong Demand in Independent Sector Market Penetration Trade Robust Housebuilding Sector & Strong Pipeline UK Channel Revenue - FY22 H1 Versus FY13 (commencement of strategy) Share gains across ‘Small Format’ players e.g. Screwfix & Toolstati
Slide 38: UK Channels – Strong RMI Demand Driving DIY; Excellent Export Growth
Click to edit–Master UK Channels titleDemand Strong RMI style Driving DIY; Excellent Export Growth UK Channel Revenue - FY22 H1 Versus FY13 (commencement of strategy) DIY Retail (FY13 - 2%) (FY13 - 2%) Continued post-pandemic strong RMI & DIY demand 1% (FY1316% - 11%) Triton – strong positions in
Slide 39: South Africa – Retail & Export Momentum; Housebuilding Starting to Recover
Click South to edit– Master Africa H1 Retailtitle styleMomentum; Housebuilding Starting to Recover & Export Retail ~ Families, interior Designers & Small Private Builder TAF Continued residential renovation driving strong demand Increasing sales of Ancillary & Add-on Products Construction En
Slide 40: Group Strategy – SA Industry Fragmentation & Consolidation Opportunity
Click Group to edit Master Strategy title style – SA Industry Fragmentation & Consolidation Opportunity South Africa Bathroom – Selective Markets @ MSP £149m £426m £325m# £312m# £1.2bn 100% 90% 80% 70% 60% Rest of Market 50% 40% Top 3 Players 30% 20% 10% 0% Adhesives & Floor Tiles Bathroom Retail Pl
Slide 41: South Africa – Investment Fundamentals & Flight To Quality
Click South to edit– Master Africa titleFundamentals Investment style & Flight To Quality Norcros South Africa South African Economy Strong heritage, market leading positions & leading brands Regional ‘hub’ economy & business friendly environment Sustained financial performance, profitability
Slide 42: Resilient Business Model – Compelling Acquisition Track Record
Click to Business Resilient edit Master title Model style – Compelling Acquisition Track Record 1 Revenue target strategy Group 2 Underlying ROCE of >15% 3 Geographic fit Acquisition criteria 4 Complementary market 5 Preferred channel mix 6 Export po
Slide 43: Exceptional Items & Acquisition Related Costs
Click to edit Exceptional Master Items title styleRelated Costs & Acquisition Exceptional Items H1 Sept H1 Sept H1 Sept FY Mar 2021 2020 2019 2021 £m £m £m £m - (2.4) - (3.8) COVID-19 related restructuring - (2.4) - (3.8) Acquisition Related Costs H1 Sept H1 Sept H1 Sept FY Mar 2021 2020 2019 2021 £
Slide 44: Net Debt Reconciliation
Click to Reconciliation Net Debt edit Master title style H1 Sept H1 Sept H1 Sept FY Mar 2021 2020 2019 2021 £m £m £m £m Net cash / (debt) – opening 10.5 (36.4) (35.0) (36.4) Net cash flow (9.5) (28.5) (6.6) 46.5 Other non-cash movements - (0.1) - (0.2) Foreign exchange - 0.7 0.5 0.6 Net cash / (debt
Slide 45: UK Pension Cashflows – Cash Outflow Close to Peak
Click to edit UK Pension Master title Cashflows – Cashstyle Outflow Close to Peak * * * Annual pensioner payroll, excludes non-predicted costs such as transfer out and early retirement payments 45
Slide 46: Interim Results: Inspiring Living Spaces
Interim Results Click to edit Master title style 6 months to 30 September 2021 Inspiring Living Spaces