Marshalls Plc · LSE:MSLH
Marshalls — Investor Day (October 2017)
89 slides from Marshalls's investor day presentation, Oct 19, 2017
Slide 1: Marshalls
Marshalls Creating Retter Spaces BUSINESS We're supporting IN THE KR COMMUNITY MADE IN clan itaeok = Sipe tas s 3 Fair Tax WE SUPPORT
Slide 2: Investor Day Thursday 19 October 2017
Investor Day Thursday 19 October 2017 Martyn Coffey
Slide 3: Executive Management Team
Executive Management Team Martyn Coffey Chief Executive Jack Clarke Pete Hallitt Tom Poole Mike Stacey Jochen Group Finance Managing Chris Harrop Simon Bourne Tom Poole Managing Clockaerts Group Director Director Group Marketing MLP Operations Development & MD Operations Director & MD Western Execut
Slide 4: Agenda
Agenda 1000 Introduction MC 10 mins 1010 Announcement MC 10 mins 1020 Acquisition of CPM Group Limited JJC 20 mins 1040 Design Space PH 10 mins 1050 New Product Development CH/TP 30 mins 1120 Self Help SB 30 mins 1150 Digital CH/PH/SH 30 mins 1220 Emerging Businesses TP 30 mins 1250 Summary MC 10 mi
Slide 5: Acquisition of CPM Group Limited
Marshalls plc Acquisition of CPM Group Limited
Slide 6: Acquisition of CPM
Acquisition of CPM • Strategic background • Business overview • The market • Product range Find out more online www.marshalls.co.uk • Financial information • Deal structure Find us on Facebook • Funding MarshallsGroup Follow us on Twitter @MarshallsGroup Follow us on LinkedIn Marshalls Follow us on
Slide 7: Strategic background
Acquisition of CPM Strategic background • CPM is a precast concrete manufacturer which specialises in underground water management solutions. • This is a significant step in the stated strategy of providing a full Water Management capability. • Water Management is a strategic focus for Marshalls and
Slide 8: Business overview
Acquisition of CPM Business overview • CPM is a specialist manufacturer of underground concrete pipes, conveyance and water management systems in the UK, targeting the Public Sector and Commercial end market. • CPM has a comprehensive range of technical and innovative water management solutions. • M
Slide 9: Market background
Acquisition of CPM Market background • Marshalls is currently active in above ground, linear drainage products, combined kerb and drainage systems. • CPM’s routes to market are through merchants, albeit the Company supplies new housebuilding and infrastructure projects (including Hinkley Point, HS2,
Slide 10: Product range
Acquisition of CPM Product range • CPM manufactures precast concrete, below ground drainage products and systems. It operates in the “collect,” “conveyance,” “clean,” “hold/release,” and “recycle” areas of the underground market and can offer a full system design capability. • The product ranges inc
Slide 11: Financial information
Acquisition of CPM Financial information • Forecast revenue for the year ending 31 December 2017 is £55.4 million (2016: £51.2 million). • Forecast profit before tax for 2017 is £4.7 million (2016: £4.6 million). • Forecast EBITDA in 2017 is £6.7 million (2016: £6.3 million). • Recent growth has bee
Slide 12: Deal structure
Acquisition of CPM Deal structure • Cash consideration of £38.3m million for the entire share capital of CPM. • Cash free / debt free basis. • No earn out although the CPM executive management team will be incentivised by an equity scheme going forward. • The acquisition cost represents o 7.8 times
Slide 13: Funding and facilities update
Acquisition of CPM Funding and facilities update Cumulative Facility Facility £m £m Expiry date • Additional £20 million facility arranged – 2022 maturity Committed facilities: Q4 2022 20 20 • Comfortable facilities and headroom Q3 2021 20 40 • Balance of committed and uncommitted facilities Q3 2020
Slide 14: Marshalls Design Space
Marshalls Design Space Pete Hallitt
Slide 15: Goal - Increased engagement with customers
Goal - Increased engagement with customers • Over 2000 Architectural practices within a 15 minute walk • Catalogues represented – Natural Stone, Concrete, Cladding, Street Furniture, Drainage • Target Customers – Primary - Architects, Landscape Architects, Interior Designers, Specifiers – Secondary
Slide 16: MDS 2017
2,500 attendees 650 drop in/booked appointments Successful Meeting types o Project Meetings o Team Meetings of 10+ o Focus Groups 1,850 event attendees 33 Events Held o From a mixture of partners that are beneficial to the business (see below) Successful event types Product launches Workshops
Slide 17: Customer survey
= rT) = =F = n eu race / Marshalls eet Spe Survey. a Design Space Hi <<First Name>>, At Marshalls we always strive to have a better understanding of how we can best serve our customers. With the Marshalls Design Space in London approaching its second birthday, we would like to find out what you thin
Slide 18: Design Space Insights
Design Space Insights • Space to conduct evening events • Focus on primary customer - Landscape Architect, Architect and Designer • Update space on a quarterly basis - based on frequency of visits • Improve communication of events, ensure promotion within the space and use PCs to communicate message
Slide 19: Design Space Refresh - 2018
Design Space Refresh - 2018 19
Slide 20: & swIeUSIeW
20 & 3 swIeUSIeW £23 Marshalls
Slide 21: = be) = “ = w n
= be) = “ = w n
Slide 22: £23 Marshalls
22 £23 Marshalls
Slide 23: New Product Development Through Concrete Innovation
New Product Development Through Concrete Innovation Chris Harrop Tom Poole
Slide 24: The Innovation Cycle
<= fe) ~~ un = i a n The Innovation Cycle Idea ona Prionttisation, 24
Slide 25: The Innovation and NPD process
The Innovation and NPD process – transition to World Class Marketing Future Scapes Evolution Plan Materials R&D The Magic... Market Intelligence What do we need... External Intern Technology Resource al Drivers 2014 Fast Track Ideas NPD The art of the possible... Sales Customer opinion... Traditiona
Slide 26: The Innovation and NPD framework
The Innovation and NPD framework There is a critical relationship Product Process between product, process and materials for development of new products. Materials Delivering the products of tomorrow (NPD but not as we know it….): • Dedicated and focussed Resource • High levels of technical competen
Slide 27: The Fundamentals
“ The Fundamentals... -~ Curated by Q? Marshalls == SIIEUSIEW £23 THE CHA THE SPACE S 27
Slide 28: Future Spaces
= be) es un = = an Future Spaces Things that will change our landscape 4 Global Mega-Trends 1. The blurring of public/private spaces 2. More people in smaller spaces GJ sustainasiuity 3. Demarcating multi-use spaces (Resources and the changing environment) 4. The new wave of water management 5. Futu
Slide 29: Day to Day Realities
Day to Day Realities 29
Slide 30: New Products Must …
New Products Must … Improve Improve Aesthetics Installation Improve Improve Sustainability Functionality Reduce Whole Life Costs 30
Slide 31: New Products & Key Drivers
New Products & Key Drivers Improving Improving Improving Improving Reducing Whole Aesthetics Installation Functionality Sustainability Life Costs Drivesys Range Driveline Drain Driveline Metro Organa Rivero Myriad Priora Range Urbex The ‘Key’ Range Drexus Range Rail Platforms 31
Slide 32: Drivesys Patented Driveway Systems
Drivesys® Patented Driveway Systems 32
Slide 33: Commercial Kerrig
Commercial Kerrig = be) = wn =F O: n 33
Slide 34: Drexus Driveline Drain
Drexus Driveline Drain Marshalls
Slide 35: Driveline Metro
Driveline Metro s|jeysuey :
Slide 36: Organa
36 Organa £23 Marshalls
Slide 37: Rivero
22 Marshalls
Slide 38: Myriad
= re¥) =i n = =o n 400 x 200 x 200 200 x 200 600 x 300 400 x 300 300 x 300 300 x 200 | 200 x 100 300 x 100 38
Slide 39: Priora Range Expansion
Priora Range Expansion = be) es un = O: n
Slide 40: Urbex
Urbex’ = $e) = n > a nw
Slide 41: The 'Key' Range
41 ’ Range The ‘Key £23 Marshalls
Slide 42: The Drexus Range
cD a0 Cc O cc n =) x< oO — a) ov << - £23 Marshalls
Slide 43: Rail Platform Range
Rail Platform Range oa | = be) = wn =F = n
Slide 44: New Products
New Products Improve Improve Aesthetics Installation Improve Improve Sustainability Functionality Reduce Whole Life Costs 44
Slide 45: Self Help Programme
Self Help Programme Simon Bourne
Slide 46: Self Help Programme – Rules of Engagement
Self Help Programme – Rules of Engagement • Additional to ongoing capital expenditure. • “Value Add” approach to accelerate efficiencies whilst maintaining SHEQ standards. • Target cost reduction opportunities and volume growth areas – “More for Less”. • Objective is < 3 years payback & healthy IRR.
Slide 47: Self Help Programme – Elimination of Product Transfer & Labour Costs
Self Help Programme – Elimination of Product Transfer & Labour Costs Plus Capability Enhancement • New equipment to eliminate logistics costs where we currently transfer products to specific regions & investment to reduce costs on labour intensive processes. – E.g. Kerb & edging press facilities ser
Slide 48: Self Help Programme – Increasing Throughput
Self Help Programme – Increasing Throughput • Investment to increase throughput speeds & cycle times on our existing equipment. – E.g. Single mould capacity doubled up. – E.g. Press encoders fitted network wide to drive standard & reduced pressing times. – E.g. Static aggregate crusher. • All based
Slide 49: Self Help Programme – Reducing Downtime
Self Help Programme – Reducing Downtime • Investment in auto wash systems in product mixers network wide. • Investment in DISAB vacuum system soda blast cleaning equipment to speed up & improve off line cleaning. • Measured wash down times to reduce downtime & increase uptime. • Standardised equipme
Slide 50: Self Help Programme – Removing Non Value Add
Self Help Programme – Removing Non Value Add • Investment in AGV’s – automatic guided vehicles. • Investment in vision systems & monitoring cameras. • Removal of tasks that are not adding value through the process. – E.g. Movement of product from end of line to curing racks on FLT’s. – E.g. Human in
Slide 51: Self Help Programme – Healthy Pipeline
Self Help Programme – Healthy Pipeline • Many projects including: – New Press at Sittingbourne. – New Recon cropping line at West Lane. – Small bin upgrade on Sandy 4 (facemix capability) – Eaglescliffe bin upgrade (facemix capability) – Static aggregate crusher at Howley Park. – Press Encoders netw
Slide 52: Digitising the Customer Journey
Digitising the Customer Journey Chris Harrop Pete Hallit Sion Harrison
Slide 53: Marshalls Digital Strategy
Marshalls Digital Strategy R I G H T D ATA R I G H T F O R M AT RIGHT TIME 53
Slide 54: Our Digital Principles
= be) = “ = w n Our Digital Principles ROBUST GOVERNANCE (1) OPEN & TRANSPARENT (®) DESIGN FOR CUSTOMER PROCESS PROMOTE AGILITY (7) COLLABORATION (g) DATA DRIVEN 54
Slide 55: User Experience Mapping
= be) = “ =F w n eee Marshalls User Experience Mapping CUSTOMER JOURNEY MAP. EVALUATION OF ae ALTERNATIVES. 63 ="!
Slide 56: Consumer Project Journey
= be) es un = O: an Consumer Project Journey REGISTER MEMBER * InspireMe SALES PERSON * CRM * CRM Quote + CRM Form * Stock Checker BACK OFFICE : oe * Guarantee * Web Link * Product Data Sheets 56
Slide 57: Consumer Web Search
= be) es un = O: an Consumer Web Search Find an accredited installer now paving & civeway meealter Company Name Skills & Services Gallery SMS Request Quote Mel Green Construction Ltd Heritage Landscape Company 4 3 qi a sf z a S Baxter Paving & Fencing Chris Hallinan Patios & Driveways Pipgiouse Drve
Slide 58: Installer Profile
= a = =F O: n Installer Profile COMPANY PROFILE Welcome to Brighouse Driveways, block paving and patio specialists. We pride ourselves in the quality of our work and always produce exceptional results. We have been trading for 20 years and have many satisfied and happy customers. Our philosophy is s
Slide 59: Installer Communication
Installer Communication Step1 After choosing their | installer, the consumer fills in their details and = fe¥) > n > — ay Step 2 | The lead is then emailed to you The lead expires after 2 weeks Step 3 | Follow the link and | view the lead on the } Marshalls website ! | If you're interested, you can
Slide 60: Register Member Appointment
Register Member Appointment 60
Slide 61: Sales Tools
Sales Tools £0 <= fe) — un =i ov n 61
Slide 62: Design the Patio – Patio Planner
Design the Patio – Patio Planner 62
Slide 63: Working with the Marshalls CAD team
Working with the Marshalls CAD team 63
Slide 64: Marshalls IDM Plans his week
Marshalls IDM Plans his week 64
Slide 65: Marshalls IDM talks to installer
Marshalls IDM talks to installer 65
Slide 66: Marshalls IDM quotes Installer
Marshalls IDM quotes Installer 66
Slide 67: Marshalls IDM prepares for installer - future
Marshalls IDM prepares for installer - future 67
Slide 68: Planning the Installation
Planning the Installation 68
Slide 69: Placing an Order
Placing an Order = be) = “ = w n | Marshalls | Thank You Coaming Decree Specs es = a OT OO Your order has been confirmed. An SFL has | PREMIER MORTARS APP. | Select date(s) | Review Your Order | ‘been teeusd for the following dates: | = | stednesday, sty 9t2017-SFLB7S447S available 30H Retarder aoe
Slide 70: Work Begins …
wn & a0 oO) co = — i) = 23 Marshalls
Slide 71: Where's My Load?
= re¥) =i n = =o n Your Marshalls delivery ta CW8 4ED has a revised expected time of arrival between 16:34 and 17:34. Do not reply: for queries call 0333 220 2701 Where’s My Load? Q a Marshalls " Coming Batter Smet Your delivery ison its way, with an expected delivery time of 12:23. You can track th
Slide 72: Product Arrives
= be) = “ = w n Product Arrives « DELIVERY NOTE 72
Slide 73: Installation Guidance
= be) un = O: an Installation Guidance YouTube * Search How to lay SYMPHONY Vitrified paving | Installation Guide | Marshalls. MarshallsTV it] 6k sf Addi ph share see More 126,195 views 1G 215 Pl 2s (*) Fabweld Stee! Products post Great video trom We've worked in partnership win Marsh. A many a proj
Slide 74: Installing the Paving
Q0 —/ > qr) jae cD) <& ~~ Q0 c oO Y Wn Cc Marshalls
Slide 75: The Completed Project
© The Completed Project = & S =A . wat ‘ - >. 4
Slide 76: Sharing Success …
Sharing Success ... 2 ‘Outside Rooms - Garden Design | requested two samples trom Marshalls Pic the other day and didn’t expect these when they arrived nank you very much for sending full size paving samples trom the Symphony porcelain Ie - fH make the cents decision making process a lot easier. Muc
Slide 77: Marshalls Retweeting and Sharing
Marshalls Retweeting and Sharing 77
Slide 78: Marshalls Register Assessment
Marshalls Register Assessment 78
Slide 79: Review of the Week
= fe¥) > n > — ay Review of the Week [080880 Stuart Williams = é- Sales Summary Register Members YTD Top & Postcode Areas Awa 1 r Fe ue Owner As r | 79
Slide 80: Measuring Engagement
= rT) = =F = n Measuring Engagement Customer/City: — gett agmard Gmpatior Award Event Prod Prom Web Toa! - # 46 415 15 6 10 12 ° ° v4 - 6s 5% 6 w w 0 0 7 - ° 415 415 12 10 10 5 o 67 - 2s ee - “ 1 15 15 12 10 12 ° o 6s - P: 6 415 15 6 10 2 o a ea - > 6 415 415 6 10 10 ° o 62 80
Slide 81: Groupwide Approach
Groupwide Approach QF Marshalls SIIEUSIEW £23 81
Slide 82: Emerging Businesses
Emerging Businesses Tom Poole
Slide 83: Landscape Protection
Landscape Protection Global market is growing & UK is no exception Crowded Places Guidance Rise in visible anti-terror NaCTSO published new guidance in June. measures Key message: how to make spaces safe Products like blocks have been found to without creating a fortress. increase peoples levels of
Slide 84: Business Focus on Key Segments
Business Focus on Key Segments PAS 170 1. Marshalls Landscape Protection - including Bollards, Post and Rail and PAS68 • Clear growth opportunity – Market Demand e.g. Hostile Vehicle Mitigation (HVM) Shallow Mount Bollard • Sales and Quotes significantly increased since recent attacks • New Product
Slide 85: Marshalls Premier Mortars & Screeds
Marshalls Premier Mortars & Screeds • Premier Mortars acquired by Marshalls in 2004 for £3.45m • Expansion has resulted in now having 14 plants with plans for further expansion • Annual turnover has grown from £4.2m in 2004 to c.£22m in 2016 • The business specialises in the supply of Ready-To-Use m
Slide 86: Marshalls Premier Mortars & Screeds - Opportunities
Marshalls Premier Mortars & Screeds - Opportunities Labour Intensive Laying Flowing Screed of Screed • Continue to build customer service reputation and intimacy • Further geographical expansion • Rollout of digital opportunity eg. site ordering App • Significant NPD opportunity with flowing screeds
Slide 87: Stone & Recon Walling Specified in ABI
Stone & Recon Walling Specified in ABI IV KW • Marshalls realistically only operating in AB Volume M2 Total_Walling Yorkshire and Scotland 634 - 1,781 345 - 634 • Opportunity for geographical growth PH DD 183 - 345 53 - 183 FK • 0 - 53 KA ML EH TD Modest market share NE DG CA BT DL LA YO HG BB DN SK
Slide 88: Minerals Division including Natural Stone Paving and Masonry & Facades
Minerals Division including Natural Stone Paving and Masonry & Facades • Masonry & Facades (formerly Stancliffe Stone) • Re-focus business and determine High end masonry and scalability façade project • Natural Stone Paving – Expansion of stone range underway (indigenous & imported) • New investment
Slide 89: Investor Day Thursday 19 October 2017 Summary
Investor Day Thursday 19 October 2017 Summary