Marshalls Plc · LSE:MSLH
Marshalls — Investor Presentation (October 2015)
107 slides from Marshalls's investor presentation, October 2015
Slide 1: Marshalls: Creating Better Spaces
Marshalls Creating Retter Spaces WE SUPPORT
Slide 2: Introduction
Martyn Coffey October 2015 Marshalls A IIntroduction An t d ti
Slide 3: Health & Safety
Health & Safety • Fire Exits & Routes are marked – please familiarise yourself with them. • To raise the Fire Alarm – break glass on alarm alarm. • If Fire Alarm sounds – it is real – please make your way out of the building using the marked exits. Do not use the lift. • The Assemblyy Point is in th
Slide 4: This Morning
This Morning • New Products Chris Harrop p • Our Commercial Business Chris Harrop Peter Hallitt • Our Domestic Business Chris Harrop Peter Hallitt • Operations Tom Poole Lunch • Marshalls Street Furniture Tour • Marshalls Premier Mortars & Screeds
Slide 5: idl
idl Creating Qerter Spaces
Slide 6: Our Business: Commercial & Public Sector
Our Business Commercial & Public Sector
Slide 7: Our Business: Domestic Consumers
Our Business Domestic Consumers
Slide 8: Marshalls: Creating Better Spaces
Marshalls Creating Retter Spaces WE SUPPORT
Slide 9: New Product Developments for 2015
Chris Harrop October 2015 Marshalls N New P Product d tD Developments l t For 2015
Slide 10: Fads, Fashions, Trends
Fads … Fashions … Trends Cultural Shift Mega Trend Impact I Trend Fad Fashion Duration
Slide 11: Marshalls Mega Trends
BS es Marshalls Mega Trends Creating Qetter Spaces
Slide 12: More Granularity
More Granularity
Slide 13: Trend Impacts & Opportunities
Trend Impacts & Opportunities
Slide 14: Current trends in Gardens
Marshalls Current trends in Gardens Creating Retter Spaces
Slide 15: Capitalising on the Trends
238 Marshalls Capitalising on the Trends Creating Rerter Spaces Manufacturin Marketing Dpt Pre-screen Prioritisation
Slide 16: Marshalls NPD process
% @ tie Marshalls Creating Better Spaces Marshalls NPD process
Slide 17: Domestic / Consumer New Products 2015
Domestic / Consumer N New P Products d t 2015
Slide 18: Drivesys Patented Driveway System Riven Stone
Drivesys® Patented Driveway System Riven Stone • Usingg the Marshalls NV Patents • Riven finish addition to Drivesys range • 50% faster to install • Technically superior • Systems approach
Slide 19: Driveline Metro
Driveline Metro • Distinctive streamlined shape • Smart contemporary look • Quick and easy to i t ll install
Slide 20: Pavesys Heritage
Pavesys Heritage • N Nextt generation ti H Heritage it Paving • Using the Marshalls NV Patents • Paving to match Drivesys range • 50% faster to install • Technically superior • Systems approach
Slide 21: Leyburn
Leyburn • E Extremely t l hardwearing h d i paving • Ideal for small ho house se builders • Matches with lots of property types
Slide 22: Symphony Vitrified Paving
Symphony Vitrified Paving • Ult Ultra-performance f paving i • Combines excellent strength and technical consistency • Stylish, Stylish contemporary appearance • Extensive colour range
Slide 23: Timberstone Decking
Timberstone Decking • Realistic wood effect • 2 colours, 1 size
Slide 24: New to Market Stones Sizes and Finishes
New to Market Stones Sizes and Finishes Stones,
Slide 25: Stoneface Walling
Stoneface Walling • A natural stone walling system with outstanding looks, ease of installation and unbeatable cost effectiveness. • The walling panels are veneers of real stone that can be quickly and easily installed onto new or existing walls
Slide 26: Commercial & Public Sector New Products 2015
Commercial & Public Sector N New P Products d t 2015
Slide 27: Renaissance Paving
Renaissance Paving • Delivering the Circular Economy • Elegant, El t lilightly htl ttextured t d paving in a subtle colour palette • Manufactured using over o e 80% recycled ecyc ed content • Ideal for p projects j where sustainability is key
Slide 28: Railway Platform Combined Coping and Tactile Units
Railway Platform Combined Coping and Tactile Units • 1 piece unit, easier and quicker to install • Aesthetically pleasing product with improved durability • Manufactured using innovative dual pour system
Slide 29: Myriad Multi Size Paving
Myriad Multi Size Paving • Combined block & flag paving system • 10 plan sizes, 4 colours • Complete design freedom through plan sizes and colours
Slide 30: Blister Paving
Blister Paving • T Trafficable ffi bl tactile t til paving i • Units designed to maintain DDA-compliant blister spacing • Available in 3 DDA-compliant colours
Slide 31: Priora Extension Pencil Edge
Priora Extension Pencil Edge • “Flat Top” Priora block units • Minimises noise and vibration for wheeled traffic • Ideal for car parks or access roads d
Slide 32: Extending the Priora System Filtration Textile
Extending the Priora System Filtration Textile • Latest addition to the “Priora System” of sub-base ancillaries • Proven to improve water quality in large scale lab testing at Coventryy Universityy • Unique UK specification performs better than the “market leading brand”
Slide 33: New Granite range
New Granite range • Greater range g of ggrey’s y to respond to current demands • Emphasis on a new warmer tone palette • Multi Country range sourcing • Reduced lead times • Lower carbon footprints • Launch of Stone App V2 – Allows designers bespoke bl d and blends dddeigns i
Slide 34: The Natural Stone App
Marshalls The Natural Stone App 1 app from Marshalls
Slide 35: Stonespar
Stonespar • New concept for stone paving • 6 exclusive stones and 6 pre- designed mixes • Pre-blended crates minimise on site space
Slide 36: Textured Yorkstone
Textured Yorkstone • New Finishes in our Ingenious Yorkstone P i Paving • Flamed • Capital • Crested
Slide 37: Organic
Organic • Designed by Czech artist Matouš Holý. • A range of 4 products including seat, bench, table & lounger • Available in 4 colours • Manufactured using aggregates and finished with polyurethane paint
Slide 38: PAS68 Shallow Mount Bollard
PAS68 Shallow Mount Bollard • High impact Protective Bollard requiring minimal foundation depthp compared to standard protective bollards • Capable of withstanding collisions of up to 50mph f from vehicles hi l weighing i hi up to 7.2 tonnes • Sleeve Sl available il bl iin a variety of materials and
Slide 39: Cycle Segregation Unit
Cycle Segregation Unit • High performance concrete cycle delineation • Demountable unit allowing for removal for major city events • Customisable inserts from natural stone to standard grey concrete • Different width options to suit varying road layout
Slide 40: RhinoBlok
RhinoBlok • Concrete C t seatt with ith b built ilt in i protective technology • Available in a range of 3 colours • Tested to IWA standards • Available with or without a timber top
Slide 41: Intelligent Street Furniture
Intelligent Street Furniture • Smartt technology S t h l th thatt can be b bbuilt ilt iinto t existing i ti products • Offers additional function to users • Users can be g grouped p byy requirement q • Operated using a tag
Slide 42: The Commercial Market Dynamics
Chris Harrop October 2015 The C Commercial i l Market M k tD Dynamics i
Slide 43: CPA Forecasts for Total New Work
CPA Forecasts for Total New Work
Slide 44: CPA Forecasts By Sector
ae CPA Forecasts Marshalls By Sector Creating Qerter Spaces CPA 5 Year Cumulative Growth Forecast to 2019 100.0% 80.0% 60.0% 40.0% 20.0% 0.0% - -20.0% BP PCOS SF EEF EE EE ELI ER FE EES ESEEES SF FF PF ELF FPF EF FIM ES OOOO VW VWI ae ar PSS OE FL ES PF HF GP? GP ES SPE OF SS PF EP KS FS SS FP FP PS
Slide 45: Commercial Construction Confidence
Commercial Construction Confidence
Slide 46: The Specification Process
Peter Hallitt October 2015 The Specification Process
Slide 47: RIBA – Plan of Works
Marshalls RIBA — Plan of Works Creating Qerter Spaces Stage 7 Gn a Stage 0 Strategic Definition Stage 1 Preparation and Brief Stage 2 Concept Design Stage 4 Technical Desig an Design
Slide 48: The Specification Role
Marshalls The Specification Role Creating Qerter Spaces el 0 = 1 ‘ 2 3 a 5 6 , ae Wi a ; - ’ a _ & t Strategic Preparation Concept Developed Technical Handover Definition and Brief Design Design Design Construction and Close Out In Use BPSketchUp BD svroves« 360
Slide 49: Specification Customers
Marshalls Specification Customers Creating Qerter Spaces AZCOM Aedas ARUP see Minbar Bovis ,,2.., HOMES ATKINS BOP. YY En oe vine! “” MITE Been BroadwayM vimp Way alyan CAPITA miller constructio SKANSKA LOVELL Winspey GILLESPIES Bellway \< 4q Keepmoat 6s PROMISE. DELIVERED. e& illi carmon miller hom
Slide 50: The Value of Specification
The Value of Specification St d d v Value Standard V l Add 2015 V Volumes l Standard d d v Value l Add dd £s Margin i per 4,000,000 Sq m sold 3,500,000 £12.00 3,000,000 £10.00 2,500,000 £8.00 2,000,000 £6.00 1,500,000 £4.00 1,000,000 £2.00 500,000 0 £‐ Standard CBP & Paving Value Added CBP & Paving
Slide 51: Marshalls Design Space Clerkenwell
Marshalls Design Space Clerkenwell • Drive engagement with existing customer base • Opportunity to target new architectural practices • In the heart of the action of our key customers • Show casing our brand leading abilities • Immediate access to samples and advice • The ability to sell all the ser
Slide 52: Marshalls Design Space Clerkenwell
Marshalls Design Space Clerkenwell
Slide 53: Why focus on the SE?
Why focus on the SE? ABI Regions 12 Month Rolling % Change Comparison 40% 12 Month % Change Sep'15 ‐ Sep'16 30% 20% 10% 0% 10% ‐10% ‐20% N thE t NorthEast N thW t NorthWest S tl d Scotland S thE t SouthEast S thW t SouthWest
Slide 54: London Design Community
London Design Community Postcode ZC2 Customers EC 327 W 252 WC 75 W 252 SE 254 SW 224 W 252 N 175 NW 161 E 134 2016
Slide 55: Major SE Projects in the Pipeline
Major SE Projects in the Pipeline
Slide 56: CRM
| ie Marshalls CRM
Slide 57: Domestic Market Dynamics
Chris Harrop October 2015 The Domestic Market Dynamics
Slide 58: CPA Forecasts for Private Housing RMI
CPA Forecasts for Private Housing RMI
Slide 59: Consumer Confidence
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Slide 60: Consumer Intentions
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Slide 61: Consumer Installation Trends
Consumer Installation Trends DIFM DIY
Slide 62: Installer Order Books
Installer Order Books Marshalls Creating Qerter Spaces All Installers Order book (weeks) Rolling BMA --#--All Installers Actual r oa =- T T T T T T T T T T T - - - (syoog 48pso) Y40M SxPEM JO Jequinu eBeseAy
Slide 63: Marshalls Register
Marshalls Marshalls Register Creating Better Spaces REGISTER
Slide 64: The Consumer's Project Journey
The Consumer’s Project Journey HOMEOWNER INTERACTS WITH WEBSITE OR APP FOR INSPIRATION AND TO FIND INSTALLER
Slide 65: The Consumer's Project Journey
The Consumer’s Project Journey INSTALLER RECIEVES LEAD THROUGH REGISTER APP
Slide 66: Installer Uses the Brochure App
INSTALLER USES THE BROCHURE APP
Slide 67: Installer Uses the Outline Project Costing App and Design Tools
INSTALLER USES THE OUTLINE PROJECT COSTING APP AND DESIGN TOOLS
Slide 68: Installer Creates a Quote Checking Stock Availability
INSTALLER CREATES A QUOTE CHECKING STOCK AVAILABILITY
Slide 69: Homeowner Confirms They Want to Proceed
HOMEOWNER CONFIRMS THAT THEY WANT TO PROCEED WITH INSTALLER SCHEDULES THE THE PROJECT WORK
Slide 70: Using the Scan Function
USING THE SCAN FUNCTION HE SCAN THE PRODUCT LABEL FOR LAYING PATTERNS AND INSTALLATION INSTRCUTIONS
Slide 71: Installer Asks the Customer for a Review
INSTALLER TAKES A PHOTO INSTALLER ASKS THE AND UPLOADS TO THEIR CUSTOMER FOR A REVIEW PROFILE
Slide 72: CRM
| ie Marshalls CRM
Slide 73: Operations
Tom Poole Oct 2015 O Operations ti
Slide 74: Objectives
Objectives • Facilitate and fuel the profitable growth of the business. – Ensure there is the capacity to supply foreseeable demand – Continue to build our service capability p y – Focus on costs – Fuel NPD through enhanced R&D capability
Slide 75: Process & Capability
Marshalls Creating Better Spaces Process & Capability
Slide 76: Mainly 'Grey' Flags & Kerbs
Marshalls Mainly ‘Grey’ Flags & Kerbs Creating Qerter Spaces Wrelaltlrelectiririe) Proesss = rlyelratiliesily prassetel Marshalls Crentong Poerter Symes
Slide 77: Mainly Concrete Block Paving
Mainly Concrete Block Paving
Slide 78: Mainly Decorative Domestic Flags
Mainly Decorative Domestic Flags
Slide 79: Extensive Logistics & Manufacturing Footprint
Extensive Logistics & Manufacturing Footprint • Manufacturing M f t i footprint f t i t supplemented l t d by ‘staging posts’ to maximise crane vehicle efficiency • Benchmarked against ‘logistics specialists’ • 97% of population within 2 hours drive time
Slide 80: Further expansion of logistics – Control of cost and service
Further expansion of logistics – Control of cost and service Largest g crane fleet in the UK operating at 44 tonnes Own fleet increased by 29 to 176 vehicles Articulated ‘Drawbar’ Drawbar vehicles also provide flexibility to service small/tight sites ‘Chartered Institute of Logistics & Transport nat
Slide 81: Service Fulfilment – Resilient & Stable
Service Fulfilment – Resilient & Stable OTIF (on ( time i in i full) f ll) service i llevels l averaging i 98% Closer to our customers Stock availability Logistics are Brand ambassadors We do what we say as well as say what we do Quality levels show YOY improvement a high bases – 28% reduction in co
Slide 82: Health & Safety – Maintain Performance
Health & Safety – Maintain Performance Marshalls PLC - LTI Frequency q y Rate ((LTI's p per 100k hours worked)) 1.60 1.40 1.20 1.00 0.80 0.60 0 40 0.40 0.20 0.00 Jan 13 Jan-13 Apr 13 Apr-13 Jul 13 Jul-13 Oct 13 Oct-13 Jan 14 Jan-14 Apr 14 Apr-14 Jul 14 Jul-14 Oct 14 Oct-14 Jan 15 Jan-15 Apr 15 Apr-1
Slide 83: In All We Do
0%, Marshalls In All We Do Creating Qerter Spaces OWN re GO THE EXTRA MILE. IT’S NEVER CROWDED.
Slide 84: Capacity Management
Capacity Management • Sufficient capacity to safeguard service levels and growth aspirations • Network has options to flex further through investment, working patterns and productivity
Slide 85: Capacity – Recent Investments: Sandy Plant
Capacity – Recent Investments Sandy Plant Recent Upgrade
Slide 86: Capacity – Recent Investments: Sittingbourne Plant
Capacity – Recent Investments Sittingbourne Plant Recent Investment
Slide 87: Focus on Cost
Focus on Cost • Leverage existing cost base • Improve manufacturing capability in the South East – Capital Investment • R&D projects on raw materials • People, P l PlPlantt & P Process efficiency ffi i projects. j t – New Manufacturing Director in place – Engineering improvements identified • Reduci
Slide 88: Inventory – Strong Sales Growth, Stock Reduced & Service Maintained
Inventory – Strong Sales Growth, Stock Reduced & Service Maintained Stock and sales £m 80 400 70 380 Improved focus on stock profiles 360 60 340 and turns 50 320 Stocck es Sale 40 300 30 280 Service levels maintained circa 98% 20 260 240 OTIF 10 220 0 200 2011 2012 2013 2014 Stock Sales Inventory Tu
Slide 89: Further Investment in Research & Development
Further Investment in Research & Development Eng. Projects Materials M t i l & Technology Capital New Product Development
Slide 90: Further Investment in Research & Development
Further Investment in Research & Development Eng Projects & Capital Eng. Materials Technology NPD & Process Building our project Including concrete Working closely with engineering capability capability. technology team team, the Marketing team to working hand in hand deliver the new Working closely
Slide 91: Capitalising on the Trends
Marshalls Capitalising on the Trends Creating Qerter Spaces Manufacturin Marketing Dpt Pre-screen Prioritisation
Slide 92: Premier Mortars & Screeds
Nick Bebb October 2015 Marshalls P Premier i Mortars M t &S Screeds d
Slide 93: Business Summary
Business Summary • Premier Mortars was acquired by Marshalls in 2004. • We employ p y circa 70 p people p • The business specializes in the supply of ready-to-use mortars (RTU) and screeds • Continuing recent expansion results in us now having 12 plants with a 13th due by C year end. • Turnover had
Slide 94: Salford Mortar Plant
Marshalls Salford Mortar Plant Creating Qerter Spaces
Slide 95: What We Do
What We Do • Specialist S i li t suppliers li off hi high h quality lit ready d tto use mortars, t renders, d screeds d and coloured sands into new housebuilding and commercial floors markets • Expanding business aiming for national coverage whilst offering a personal level of service from a multi-s
Slide 96: Plant locations
Marshalls Plant locations Creating Qerter Spaces donderry / Derry t ° j 7 IRELAND SBetfast - take Oistrct)\ Naronal Park isle of Man é. Dundalk 4 co ) ~~ Dublin ‘e Bray Norwich ° co Westora Waterford Milton Keynes e J 2 cy x wel erm Saas 1 PD Canterbury oa mo pe J = Southampton Cata 2 Prinbtan S201s
Slide 97: Keys to Success
Keys to Success • Focused F d on Customer C t S i –customer Service t service i charter updated 2015 • Low cost capital start up and flexible model to find the right g locations • Low cost operation at site level – staff multi-skilled • Good locations to enable us to ‘multiple’ drop mortar within 25
Slide 98: Opportunities
Opportunities • Further F h selective l i growth h opportunities i i iin b both h RTU and dSScreed d through geographical expansion • Build on the strong relationships we have regionally with National Housebuilders • Bolt on new product development opportunities nationally • Continue to enhance serv
Slide 99: Marshalls Street Furniture
Jaz Vilkhu October 2015 Marshalls M h ll Street Furniture
Slide 100: What is Street Furniture?
What is Street Furniture? DEFINITION (WIKIPEDIA) Street furniture is a collective term for objects and pieces of equipment installed on streets and roads for various purposes purposes. It includes benches benches, traffic barriers barriers, bollards, post boxes, streetlamps, traffic lights, traffic
Slide 101: Natural Fit with Marshalls Product Portfolio
Natural Fit with Marshalls Product Portfolio • In all scape types types, street furniture sits alongside other Marshalls products • Specified by same architects & installed by the same contractors • One brand, one provider, one contact, one contract • Enhanced “buildability, maintainability & life c
Slide 102: City of London
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Slide 104: Slide 104
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Slide 107: Marshalls: Creating Better Spaces
Marshalls Creating Retter Spaces WE SUPPORT