Slide 1: Fourth Quarter & Year End Results Presentation
Fourth Quarter & Year End Results Presentation JULY 31, 2024 1
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 within the meaning of the Private Securities Litigation Reform Act of 1995, and invol
Slide 3: Highlights and introduction
01 Highlights and introduction Kevin Murphy, CEO 3
Slide 4: Fourth quarter financial highlights
Fourth quarter financial highlights Q4 Net sales ($m) Q4 Adjusted operating profit* ($m) Q4 Adjusted EPS – diluted* 7,971 7,946 849 857 7,838 814 $2.98 $2.85 $2.77 699 $2.37 6,567 2021 2022 2023 2024 2021 2022 2023 2024 2021 2022 2023 2024 +21.4% (1.7%) +1.4% +21.5% (4.1%) +5.3% +20.3% (2.8%) +7.6%
Slide 5: FY2024 Financial highlights
FY2024 Financial highlights $29.6b $2.8b 9.5% $9.69 Net sales Adjusted operating profit* Adjusted operating margin* Adjusted EPS – diluted* $1.9b $1.4b 10 31.1% Operating cash flow Shareholder returns** Number of acquisitions Return on capital employed* Resilient results in a year of market headwind
Slide 6: Market update: Full year US end-market revenue
Market update: Full year US end-market revenue FY2024 FY2024 Ferguson US Estimated market % of US net sales* organic revenue decline** (decline)/growth*** Residential 51% Approx. (7%) (4%) Non-residential 49% Approx. (4%) Flat 100% Approx. (6%) (2.5%) Continued market outperformance * For year ended
Slide 7: Long-term track record of outperformance
Long-term track record of outperformance $29.6B $19.9B $2.8B $1.6B 9.5%** 8.0%** $12.9B $0.9B 7.1% ‘14 ‘15 ‘16 ‘17 ‘18 ‘19 ‘20 ‘21 ‘22 ‘23 ’24 Revenue* Adjusted Operating Profit* From FY20 to FY24 Revenue Adjusted operating margin Adjusted operating profit Adjusted diluted EPS +49% +150bps +78% +92%
Slide 8: Financial Review
02 Financial Review Bill Brundage, CFO 8
Slide 9: Fourth quarter financial highlights
Fourth quarter financial highlights $m (except per share amounts) Q4 2024 Q4 2023 Change Net sales 7,946 7,838 +1.4% Gross margin 31.0% 30.6% +40 bps Adjusted operating profit* 857 814 +5.3% Adjusted operating margin* 10.8% 10.4% +40 bps Adjusted earnings per share – diluted* $2.98 $2.77 +7.6% Adjus
Slide 10: Balanced approach to US end markets
Balanced approach to US end markets Q4 2024 Q4 2023 % of US net US net sales US net sales sales* growth/(decline) growth/(decline) Residential 51% Flat (4%) Non-residential 49% +3% +2% Commercial 34% +2% +1% Civil/Infrastructure 8% +4% Flat Industrial 7% +3% +8% 100% +1.3% (1.5%) Non-residential out
Slide 11: USA fourth quarter net sales
USA fourth quarter net sales Q4 2024 Q4 2023 % of US net Customer group net sales net sales sales* growth/(decline) growth/(decline) Residential Trade Plumbing 17% +1% (11%) HVAC 12% +9% +4% Residential Building and Remodel 14% Flat +2% Residential Digital Commerce 7% (12%) (9%) Waterworks 22% +5% (
Slide 12: Segment financial highlights
Segment financial highlights $m Q4 2024 Q4 2023 Change Net sales US 7,528 7,428 +1.3% Canada 418 410 +2.0% Total net sales 7,946 7,838 +1.4% Adjusted operating profit* US 844 804 +5.0% Canada 22 22 Flat Central and other costs (9) (12) Total adjusted operating profit 857 814 +5.3% * The Company uses
Slide 13: FY2024 Financial highlights
FY2024 Financial highlights $m (except per share amounts) FY2024 FY2023 Change Net sales 29,635 29,734 (0.3%) Gross margin 30.5% 30.4% +10 bps Adjusted operating profit* 2,824 2,917 (3.2%) Adjusted operating margin* 9.5% 9.8% (30) bps Adjusted earnings per share – diluted* $9.69 $9.84 (1.5%) Adjuste
Slide 14: Cash flow – full year
Cash flow – full year $m FY2024 FY2023 Adjusted EBITDA* 3,015 3,105 Working capital (339) 410 Interest and tax (839) (838) Other items 36 50 Operating cash flow 1,873 2,727 Capex (372) (441) Proceeds from the sale of assets 21 9 Free cash flow* 1,522 2,295 Strong cash generation * This is a non-GAAP
Slide 15: Capital allocation
Capital allocation 1. Organic growth 2. Dividends 3. Acquisitions 4. Surplus capital returns Working capital • Quarterly dividend of $0.79 • Invested $260m in 10 • $634m share repurchases per share acquisitions during the fiscal completed during fiscal year • Inventory position now year • ~3.3m shar
Slide 16: Sequential performance
Sequential performance FY23 FY24 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Organic revenue growth / +12.7% +2.7% (2.5%) (5.3%) (4.9%) (3.7%) (0.9%) (0.2%) (decline)* Gradual improvement in organic trends * Management evaluates organic revenue as it provides a consistent measure of the change in revenue year-on-year.
Slide 17: FY2025 Guidance
FY2025 Guidance • Net sales to be low single digit growth • Assumes our markets are down low single digits, inclusive of pricing slightly down for the year. • We assume continued Company market outperformance and contribution from already completed acquisitions… • …offset in part by one fewer sales
Slide 18: Our focus on deploying scale locally
03 Our focus on deploying scale locally Kevin Murphy, CEO 18
Slide 19: Supply chain strategy
Supply chain strategy Best breadth & depth where and when you need it 01 02 03 World-class supply chain Network optimization Best local service We will connect the entire supply chain We will optimize our network through a Local relationships advantaged from the point of manufacturing to the combina
Slide 20: HVAC everywhere we are Plumbing
HVAC everywhere we are Plumbing We help the dual-trade pro succeed by providing convenient access to the expertise, equipment, parts and supplies for their project needs. • Our multi-brand strategy ensures a wide selection of both plumbing and HVAC products locally. • We remain focused on dual-trade
Slide 21: Large capital projects
Large capital projects Multi-Customer Group opportunity • Waterworks, Commercial / Mechanical, Project Cost* Industrial and Fire & Fabrication ~$2.5T Engage early to provide value to owners, general contractors, engineers and our contractor customers Focus areas • Data centers Addressable Market Opp
Slide 22: Closing remarks
Closing remarks Thank you to our associates. 1. Continued resilient execution from our teams in serving the complex project needs of our specialist pro customers. 2. Despite market headwinds and deflation during the year, we continued to outperform our markets, returned to volume growth, expanded gr
Slide 23: Join us for Q&A
Join us for Q&A vad
Slide 24: Appendix
04 Appendix # FERGUSON
Slide 25: Leading positions in highly fragmented North American markets
Leading positions in highly fragmented North American markets Residential Trade Plumbing HVAC $30b market 18% Share #2 Market Position ~$70b 5% Share $30b revenue with a ~$340b market #3 Market Position Residential Building and Remodel $29b 14% Share market #1 Market Position Residential Digital Com
Slide 26: 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 July 31, (In millions) 2024 2023 2022 2021 Net income $451 $584 $580 $674 Loss (income), discontinued operations (net of tax) — — 2 (9) Income from continuing operations 451 584 582 665 Provision for inc
Slide 27: Reconciliation of Net Income to Adjusted Operating Profit and Adjusted EBITDA
Reconciliation of Net Income to Adjusted Operating Profit and Adjusted EBITDA Twelve months ended July 31, (In millions) 2024 2023 2022 2021 2020 Net income $1,735 $1,889 $2,122 $1,472 $961 (Income) loss, discontinued operations (net of tax) — — (23) 158 12 Income from continuing operations 1,735 1,
Slide 28: 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. As of July 31, (In millions) 2024 2023 Long-term
Slide 29: Return on capital employed
Return on capital employed As of July 31, (In millions) 2024 Average net debt(1) $3,281 Average shareholders' equity(2) 5,327 Average capital employed 8,608 Return on capital employed (ROCE)(3) 31.1 % 1. Management employs the following averaging method: beginning balance net debt plus ending balanc
Slide 30: 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 July 31, 2024 2023 2022 2021 (In millions, except per share amounts) per share(1) per share(1) per share(1) per share(1) Net income $451 $2.23 $584 $2.85 $580 $2.72 $674 $3.02 Loss (income) from discont
Slide 31: Reconciliation of Net Income to Adjusted Net Income and Adjusted EPS - Diluted
Reconciliation of Net Income to Adjusted Net Income and Adjusted EPS - Diluted Twelve months ended July 31, 2024 2023 2022 2021 2020 (In millions, except per share amounts) per share(1) per share(1) per share(1) per share(1) per share(1) Net income $1,735 $8.53 $1,889 $9.12 $2,122 $9.69 $1,472 $6.55
Slide 32: Thank you
FERGUSON Thank you