Slide 1: 2024 Full Year Results Presentation
Genuit Group plc 1 2024 Full Year Results Presentation 11 March 2025
Slide 2: Disclaimer
Disclaimer The information contained in this presentation has not been independently verified and this presentation contains various forward-looking statements that reflect management’s current views with respect to future events and financial and operational performance. The words “growing”, “scope
Slide 3: Agenda
Agenda Joe Vorih CEO Introduction Joe Vorih, CEO Tim Pullen Financial Results Tim Pullen, CFO CFO Strategic Progress Joe Vorih, CEO and Outlook Q&A 3
Slide 4: Key Highlights
Key Highlights Increased underlying operating margin (16.0% to 16.4%) despite market driven revenue reduction of 4.3% Strong underlying operating cash generation of £91.6m, 99.3% cash conversion Net debt reduced from 1.1 times to 0.9 times pro-forma EBITDA providing strategic optionality for i
Slide 5: Market Context
Market Context Sector outlook buoyed by structural growth drivers • Government reinforcing commitment and policies to address housing shortage • Evidence the sector is now mobilising for the Future Homes Standard 2025 • UK water sector planning 86% increase in spending for AMP8* investment period, w
Slide 6: Financial Results
Financial Results Tim Pullen CFO 6
Slide 7: Financial Highlights
Genuit Group 2024 Full Year Results Financial Highlights Further margin improvement and strong cash generation despite challenging backdrop Cash Revenue EBIT Margin EBIT Conversion Net Debt DPS £561.3m 16.4% £92.2m 99.3% £102.9m 12.5p Down Up Down Up Reduced Up 4.3% 40bps 2.0% 11.6pps 19.6% 0.1p Imp
Slide 8: Summary P&L
Genuit Group 2024 Full Year Results Summary P&L Delivering efficiency to increase margins £m 2024 2023 Change Strong gross margin improvement by 220bps, Revenue 561.3 586.5 (4.3)% driven by productivity gains through the Genuit Cost of sales (311.5) (338.7) (8.0)% Business System and purchasing sa
Slide 9: Financial Results - Revenue
Genuit Group 2024 Full Year Results Financial Results- Revenue Benefiting from a diversified portfolio Group Revenue FY24 Revenue Breakdown 1.3% £m 11.0% FY24 33.8% 28.7% 561.3 41.3% 26.0% FY23 586.5 28.8% 29.2% UK New Build UK RMI SBS CMS WMS Other UK Non-Housing * International 9 * Non-Housing pri
Slide 10: Financial Results - Profit
Genuit Group 2024 Full Year Results Financial Results - Profit Productivity gains and cost actions increasing margins despite market headwinds Group Underlying Profit and Underlying Operating Margin ROS increased by 40bps from 16.0% in 2023 to 16.4% in 2024 £m 17.5 FY24 92.2 Productivity gains t
Slide 11: Business Units Overview 2024
Genuit Group 2024 Full Year Results Financial Results Business Units Overview 2024 13.7% Revenue (£m) Underlying Operating Profit (£m) 586.5 15.9% -4.3 -9.5 1.3 94.1 561.3 1.3 92.2 -11.1 -0.3 -0.4 -4.1 16.0% 16.4% 2023 CMS WMS SBS Other 2024 2023 CMS WMS SBS Other 2024 11
Slide 12: Climate Management Solutions (CMS)
Genuit Group 2024 Full Year Results Financial Results Climate Management Solutions (CMS) £m FY24 14.9% 24.1 Revenue 2.6% lower YoY (4.1% on a like- 161.6 for-like basis) Headwinds within the residential 13.7% 22.7 boiler and commercial ventilation FY23 165.9 markets Stronger Q4 for Adey and Nu
Slide 13: Water Management Solutions (WMS)
Genuit Group 2024 Full Year Results Financial Results Water Management Solutions (WMS) £m Revenue 5.6% lower YoY (7.5% on a like- 8.5% 13.6 FY24 160.9 for-like basis) Subdued market volumes 10.4% 17.7 Lower customer confidence in Q4 FY23 170.4 Underlying operating margin 190 bps lower than 2
Slide 14: Sustainable Building Solutions (SBS)
Genuit Group 2024 Full Year Results Financial Results Sustainable Building Solutions (SBS) £m Revenue 4.6% lower YoY 23.5% 54.4 FY24 231.7 Resilient volume performance 21.9% 53.1 Underlying operating margin 160 bps FY23 242.8 higher than 2023 Effective cost management Underlying Operating Pr
Slide 15: Non-underlying items
Genuit Group 2024 Full Year Results Financial Results Non-underlying items £m 2024 2023 Non-underlying items increased marginally to Non-underlying items: £33.0m (2023: £32.1m) before tax of which Amortisation of intangible assets (14.4) (14.8) £24.4m is non-cash Impairment of goodwill (12.4) - Im
Slide 16: Cashflow
Genuit Group 2024 Full Year Results Financial Results Cashflow £m 2024 2023 Change EBITDA (before non-underlying items) 119.2 119.8 (0.6) Underlying cash generated from operations of Capex (26.0) (33.8) 7.9 £91.6m with an operating cash conversion of Leases (10.6) (7.6) (3.0) 99.3% Working capital
Slide 17: Capital Allocation
Genuit Group 2024 Full Year Results Financial Results Capital Allocation Maximising value through efficient capital deployment Continued investment in the business – Investment in innovation, Organic efficiency and sustainability £26.0m capital expenditure in 2024. investment to deliver future gro
Slide 18: Strategic Progress & Outlook
Strategic Progress & Outlook Joe Vorih CEO 18
Slide 19: Together, we create sustainable living
Genuit Group 2024 Full Year Results Our purpose Together, we create sustainable living 19
Slide 20: Our strategy Sustainable Solutions for Growth
Genuit Group 2024 Full Year Results Our strategy Sustainable Solutions for Growth Sustainability Growth Providing the lowest-carbon Focusing on higher-growth, choice for our customers to sustainability-driven markets, maximise exposure to through organic growth and structural growth drivers discipli
Slide 21: Climate Management Solutions
Key Achievements FY24 • Offsetting commercial market softness with strong growth in residential ventilation • Innovations into the MVHR ventilation market • Promising Adey performance in Q4 • Margin improvement through GBS • Integration of Omnie with Nu-Heat underway Focus Areas for FY25 • Growth li
Slide 22: Water Management Solutions
Key Achievements FY24 • Growth in Polypipe Middle East relating to flood mitigation • Supporting customers’ environmental obligations with 65% coverage of products with EPDs • Increased proportion of recyclate polymers used, beyond the 76.5% achieved in 2023 • Integration of Sky Garden Focus Areas f
Slide 23: Sustainable Building Solutions
Key Achievements FY24 • Growth in PolyPlumb Enhanced, Polypipe Advantage and new-build UFH • Improved purchasing of materials and delivered GBS productivity gains • Significant share gains secured in Q4 (competitive exit) • New CRM system, enhancing sales conversion and account management Focus Area
Slide 24: Leveraging GBS for Growth
Genuit Group 2024 Full Year Results Leveraging GBS for Growth How the team used GBS Polypipe Building Services used the GBS tool “SMED” (Single Minute Exchange of Dies) whilst preparing for Productivity gains: projected growth Focused on an injection moulding machine Changeover time Achieved w
Slide 25: Utilising GBS For Sustainability
Genuit Group 2024 Full Year Results Utilising GBS For Sustainability Environmental Product Declarations (EPDs) are the most common method within the construction products sector to demonstrate our position as ‘lowest-carbon supplier of choice’ Number of EPDs Key enabler for growth as a low-carbo
Slide 26: Driving Sustainability Through Strategy Deployment
Genuit Group 2024 Full Year Results Driving Sustainability Through Strategy Deployment How the team used GBS Polypipe Civils & Green Urbanisation used GBS tools to create a focused Carbon Reduction Plan Carbon removed Team kaizen event to evaluate opportunities from our products: Targeting dec
Slide 27: Key Achievements FY24 People & Culture
Key Achievements FY24 • Continued commitment to diversity and inclusion, bringing a competitive advantage • Of the 100 internal promotions during the year, 30% were female • Ongoing investment in the workforce to maximise skill base, operational leverage and reinforce GBS • Over 15% of Genuit employ
Slide 28: Disciplined M&A is a key part of our strategy
Genuit Group 2024 Full Year Results Disciplined M&A is a key part of our strategy Sky Garden and Omnie & Timoleon are consistent with stated objectives Expanding M&A pipeline in line with growth ambition Overseas acquisitions have an important role alongside attractive opportunities to strengt
Slide 29: Outlook
Outlook Trading for 2025 has started in line with management expectations Targeting to offset increase in employment costs with a balanced approach Expecting to deliver medium-term 20% target margin through productivity gains from the Genuit Business System and operating leverage The Group i
Slide 30: Our Investment Case
Genuit Group 2024 Full Year Results Our Delivering compound earnings growth from Investment Case sustainability-driven growth markets Operating in built Differentiated, Leading positions Margin expansion Opportunity to Highly cash environment innovative, low - across diverse potential, including exp