Ferguson Enterprises Inc. · NYSE:FERG
Ferguson Enterprises — FY2021 Earnings Presentation
28 slides from Ferguson Enterprises's earnings presentation, Sep 28, 2021
Slide 1: IFRS to US GAAP conversion
IFRS to US GAAP conversion September 28, 2021
Slide 2: Forward-Looking Statements
US GAAP update Forward-Looking Statements Certain information included in this presentation is forward-looking, including within the meaning of the United States Private Securities Litigation Reform Act of 1995, and involves risks, assumptions and uncertainties that could cause actual results to dif
Slide 3: US GAAP conversion: Group financial statements
US GAAP conversion: 1 Group financial statements Disclaimer: • All US GAAP and US non-GAAP financial measures contained in this presentation are unaudited, preliminary and subject to change. Accordingly, such information may be presented differently in future filings by us with the SEC. Ferguson plc
Slide 4: Headline results summary – IFRS & US GAAP
Section US GAAP heading update Headline results summary – IFRS & US GAAP $ millions Restated1 IFRS Captions FY 2021 FY 2020 FY 2021 FY 2020 US GAAP Captions Statutory Financial Results Revenue 22,792 19,940 22,792 19,940 Net Sales Profit before tax 1,891 1,292 1,862 1,272 Income before income taxes
Slide 5: Bridge: IFRS trading profit to US GAAP & adjusted operating profit/EBITDA
Section US GAAP heading update Bridge: IFRS trading profit to US GAAP & adjusted operating profit/EBITDA1 % of US GAAP US GAAP % of FY2021 $ millions IFRS Total Sales adjustments Total Sales Operating profit 2,034 8.9% (84) 1,950 8.6% Add: Exceptional items2 11 - 11 Add: Amortization of acquired int
Slide 6: Key principles: Income statement bridge to US GAAP
Section US GAAP heading update Key principles: Income statement bridge to US GAAP The following provides the respective impacts to the FY2021 Income Statement: • Revenue & gross profit: No differences arise between IFRS and US GAAP. • Segment reporting: Will continue to report two segments under US
Slide 7: Impact on Ferguson's financial statements: income statement
Section US GAAP heading update Impact on Ferguson’s financial statements: income statement US GAAP FY2021 $ millions adjustments US GAAP IFRS Captions IFRS Total Total US GAAP Captions Revenue 22,792 - 22,792 Net sales Cost of sales (15,812) - (15,812) Cost of goods sold Gross profit 6,980 - 6,980 G
Slide 8: Key principles: Balance sheet bridge to US GAAP
Section US GAAP heading update Key principles: Balance sheet bridge to US GAAP The following provides the respective impacts to the FY2021 Balance sheet: • Presentation – All assets and liabilities will be presented in order of liquidity (see appendix) • Goodwill – Historic differences primarily due
Slide 9: Impact on Ferguson's financial statements: balance sheet
Section US GAAP heading update Impact on Ferguson’s financial statements: balance sheet FY2021 $ millions IFRS US GAAP US GAAP IFRS Captions Total adjustments Total US GAAP Captions Intangible assets: goodwill 1,757 71 1,828 Goodwill Intangible assets: other 546 - 546 Other intangible assets, net Ri
Slide 10: Impact on Ferguson's financial statements: balance sheet
Section US GAAP heading update Impact on Ferguson’s financial statements: balance sheet FY2021 $ millions IFRS US GAAP US GAAP IFRS Captions Total adjustments Total US GAAP Captions Trade and other payables 4,022 (992) 3,030 Accounts payable 1,147 1,147 Other current liabilities Current tax payable
Slide 11: Impact on Ferguson's financial statements: condensed cash flow
Section US GAAP heading update Impact on Ferguson’s financial statements: condensed cash flow FY2021 $ millions IFRS US GAAP US GAAP IFRS Captions Total adjustments Total US GAAP Captions Cash and Cash equivalents, beginning of year $2,115 $15 $2,130 Cash, Cash equivalents & restricted cash, beginni
Slide 12: Bridge: IFRS Headline EPS to Adjusted Net Income
Section US GAAP heading update Bridge: IFRS Headline EPS to Adjusted Net Income US GAAP US GAAP - FY2021 $ millions IFRS Total adjustments derived Total Profit from continuing operations 1,650 (20) 1,630 Add: Non-recurring tax (credits) (220) - (220) Add: Exceptional items (net of tax) 10 - 10 Add:
Slide 13: Return on capital employed (ROCE)
Section US GAAP heading update Return on capital employed (ROCE) FY 2021 FY 2020 FY 2019 Primary Methodology Differences: IFRS (historic methodology) 28.2% 23.9% 26.2% • Numerator: Operating profit, excluding - Trading Profit, including Discontinued Operations $2,233m $1,677m $1,611m exceptionals1 (
Slide 14: Appendix
Appendix 2 Ferguson plc 14
Slide 15: US GAAP: Condensed consolidated income statement
US GAAP update US GAAP: Condensed consolidated income statement $ millions FY 2021 FY 2020 FY 2019 FY 2018 Net sales 22,792 19,940 19,729 18,184 Cost of goods sold (15,812) (13,957) (13,822) (12,748) Gross profit 6,980 5,983 5,907 5,436 Selling, general and administrative expenses (4,732) (4,329) (4
Slide 16: US GAAP to US non-GAAP Adjusted Operating Profit & Adjusted EBITDA reconciliation
Section US GAAP heading update US GAAP to US non-GAAP Adjusted Operating Profit & Adjusted EBITDA reconciliation $ millions FY 2021 FY 2020 FY 2019 FY 2018 Net Income 1,472 961 1,122 1,273 Add: Net loss (income) from discontinued operations 158 12 (66) (431) Add: Income tax 232 299 254 340 Add: Inte
Slide 17: US GAAP: Headline results summary by segment
US GAAP update US GAAP: Headline results summary by segment $ millions Q1 2021 Q2 2021 H1 2021 Q3 2021 Q4 2021 FY 2021 Financial Results US 5,050 4,654 9,704 5,598 6,176 21,478 Canada 322 283 605 318 391 1,314 Total Net Sales 5,372 4,937 10,309 5,916 6,567 22,792 US 472 350 822 560 688 2,070 Canada
Slide 18: US GAAP: Headline results summary by segment
US GAAP update US GAAP: Headline results summary by segment $ millions Restated1 Q1 2020 Q2 2020 H1 2020 Q3 2020 Q4 2020 FY2020 Financial Results US 4,893 4,425 9,318 4,541 4,998 18,857 Canada 315 260 575 209 299 1,083 Total Net Sales 5,208 4,685 9,893 4,750 5,297 19,940 US 425 315 740 343 503 1,586
Slide 19: US GAAP: Headline results summary by segment
US GAAP update US GAAP: Headline results summary by segment $ millions Restated1 Q1 2019 Q2 2019 H1 2019 Q3 2019 Q4 2019 FY2019 Financial Results US 4,607 4,267 8,874 4,457 5,027 18,358 Canada and Central Europe 421 374 795 250 326 1,371 Total Net Sales 5,028 4,641 9,669 4,707 5,353 19,729 US 400 30
Slide 20: US GAAP: Headline results summary by segment
US GAAP update US GAAP: Headline results summary by segment $ millions Restated1 Q1 2018 Q2 2018 H1 2018 Q3 2018 Q4 2018 FY 2018 Financial Results US 4,112 3,800 7,912 4,109 4,649 16,670 Canada and Central Europe 400 361 761 341 412 1,514 Total Net Sales 4,512 4,161 8,673 4,450 5,061 18,184 US 362 2
Slide 21: US GAAP: Condensed consolidated balance sheet
US GAAP update US GAAP: Condensed consolidated balance sheet $ millions FY 2021 FY 2020 Cash and cash equivalents 1,335 2,115 Accounts receivable, net 2,786 2,240 Inventories 3,273 2,459 Prepaid and other current assets 707 566 Assets held for sale 3 1,158 Current assets 8,104 8,538 Property, plant
Slide 22: US GAAP: Condensed consolidated balance sheet
US GAAP update US GAAP: Condensed consolidated balance sheet $ millions FY 2021 FY 2020 Accounts payable 3,030 2,296 Short-term debt 36 531 Income taxes payable 165 41 Current operating lease liabilities 263 249 Other current liabilities 1,219 821 Liabilities held for sale - 719 Current liabilities
Slide 23: US GAAP: Cash flow statement
US GAAP update US GAAP: Cash flow statement $ millions FY 2021 FY 2020 Net Earnings 1,472 961 Income from discontinued operations 158 12 Income from continuing operations 1,630 973 (Earnings) loss from equity investment (1) 2 Gain on disposal of equity investment - (7) Impairment of equity investmen
Slide 24: US GAAP: Cash flow statement
US GAAP update US GAAP: Cash flow statement $ millions FY 2021 FY2020 Net cash provided by operating activities 1,380 1,533 Cash flows from investing activities: Purchase of businesses acquired, net (335) (307) Proceeds from sale of assets and business divestitures 18 17 Additions to property, build
Slide 25: US GAAP: ROCE IFRS to US GAAP Bridge
US GAAP update US GAAP: ROCE IFRS to US GAAP Bridge $ millions FY 2021 FY2020 FY2019 Numerator summary: IFRS Trading Profit, including Discontinued Operations 2,233 1,677 1,611 Methodology adjustments Exclude discontinued operations (57) (17) (72) Amortization of acquired intangibles (131) (114) (11
Slide 26: US GAAP: ROCE IFRS to US GAAP Bridge
US GAAP update US GAAP: ROCE IFRS to US GAAP Bridge $ millions FY2021 FY2020 FY2019 Denominator summary: IFRS Average Capital Employed Average shareholders’ equity 4,590 4,361 4,204 Average net debt 1,183 1,104 1,138 Add: average lease liabilities 1,223 676 - Add: average historical goodwill write-o
Slide 27: Net Debt Reconciliation
US GAAP update Net Debt Reconciliation1 $ millions FY 2021 FY2020 FY2019 FY2018 Long-term debt 2,528 2,635 2,296 1,525 Short-term debt 36 531 25 319 Derivative (assets) liabilities (21) (39) (22) 2 Cash (1,335) (2,115) (1,133) (833) Net debt (U.S. GAAP) 1,208 1,012 1,166 1,013 Book overdrafts2 147 0
Slide 28: US GAAP to US non-GAAP Adjusted Net Income and EPS
Section US GAAP heading update US GAAP to US non-GAAP Adjusted Net Income and EPS $ millions FY 2021 FY 2020 Net income 1,472 961 Add: Loss from discontinued operations (net of tax) 158 12 Profit from continuing operations 1,630 973 Add: Non-recurring tax (credits) (220) (9) Add: Exceptional items (