Breedon Group Plc · LSE:BREE
Breedon — FY2024 Earnings Presentation
49 slides from Breedon's earnings presentation, March 2025
Slide 1: Breedon Group plc Annual Results 2024
> FR Breedon Group ple Annual Results 2024 4 BREEDON MAKING A MATERIAL aa ; DIFFERENCE
Slide 2: Agenda and presenters
J Breedon Group ple An nual Results 2024 wer scree Ss Finah atv jaw | Operstion. | Acquistion of Lionmark | Summary and outlook | @84 | Append | Group highlights Rob Wood, Chief Executive Officer Financial review James Brotherton, Chief Financial Officer Operational review Rob Wood Acquisition of Li
Slide 3: Group highlights
Slide 4: 2024 results ahead of expectations
BS Breecion Group ple Annual Results 2024 Group highlights | Financial review | Operational review | Acquisition of Lionmark | Summary and outlook | G&A | Appendix | 3 2024 results ahead of expectations Successful delivery of Strategic objectives j H Ig h | Ig hts A further year of record results; e
Slide 5: Significant strategic progress
& Breedon Group ple Annual Results 2024 Groupthighiiahts t Breedon 3. 0; significant strategic progress = Expand and Improve; liVing Gfwcides y , . gi: ‘ WEE any Be rat a Ad = Expand; scalable third platform established; acquisition of Lionmark = Improve; focus on excellence, scaling capacity approp
Slide 6: Financial review
E& Breedon Group ple Annual Results 2024
Slide 7: 2024 financial highlights
Breedon Group ple Annual Results 2024 |. Group highlights eee Operational review | Acquisition of Linmark | Summary and outlook | Q&A | Appendx | 6 2024 financial highlights Balanced financial performance Revenue £1,576m £1,488m Free Cash Flow £114.1m £94.8m Reported : growth Net capex Net Debt eere
Slide 8: Revenue and EBITDA bridges
Breedon Group ple Annual Results 2024 Group highlights [Financial review! Revenue and EBITDA bridges Sequential improvement in cement and ready-mixed concrete volumes Revenue bridge £m +6% 1,488 | 23 | (94) | 159 | 1,576 2023 Sales Volume M&A 2024 Price & Mix +2% (6)% +10% EBITDA bridge £m EBITDA Ma
Slide 9: 2024 divisional EBITDA contributions
BR Breedon Group ple Annual Results 2024 Group highlights Operational review | Acquisition ofLionmark | Summary and outlook | G&A | Appendix | 8 2024 divisional EBITDA contributions Expansion in Underlying EBITDA margin Great Britain Ireland United States Cement Group £997.4m £233.4m £132.5m £309.2m
Slide 10: Net Debt and cash flow
Breedon Group ple Annual Results 2024 Group highlights |JJEineneieIaviEWs] Operational review stion of Lionmark | Summary and outlook | Q&A | Appendix | Net Debt and cash flow Further year of cash generation +£114.1m Free Cash Flow before major capital projects 269.9 (16.6) 46 17.6) — (24.0) ie) 102
Slide 11: Financial discipline
Financial discipline Covenant Leverage 1x - 2x Outperform our markets Achieved Achieved Profitability Underlying EBITDA margin 17.5% - 20.5% Underlying EBIT margin 12% - 15% Improving cee oe Returns ROIC >10% Dividend Payout ratio 40% Cash flow FCF conversion >45% Improving Achieved
Slide 12: Operational review
- - a , - 4 ee + 4 Breedon Group ple Annual Results 2024 Group highlights | Financialreview |J pe SVGHINAcailistion of ion [Summary ana outSok | “OBA 4) Pes. * oe . a, y a eas . Operational review -
Slide 13: UK market modest recovery forecast
BB Breedon Group ple Annual Results 2024 Group highights | Financial review Reore| Acquisition of Lionmark | Summary and outlook | Q&A | Appendix | 2 UK market modest recovery forecast Challenging 2024 should represent a floor in construction activity UK GDP growth modest UK construction forecast @
Slide 14: Rol market reflects economic growth
BB Breedon Group ple Annual Results 2024 Group highights | Financial review Reore| Acquisition of Lionmark | Summary and outlook | Q&A | Appendix | B Rol market reflects economic growth Benefiting from budget surplus Positive domestic demand Rol construction forecast @ Residential @ Infrastructure ~
Slide 15: United States steady growth
Breedon Group ple Annual Results 2024 Group highlights | Financial review peor Acquisition of Lionmark | Summary and outlook | Q&A | Appendx | 14 United States steady growth Strong stimulus tailwind US GDP growing ~ GDP increased 2.8% in 2024; modest fourth quarter deceleration - weather related ~ M
Slide 16: Great Britain
ages peor Acquistion of Lionmark | Summary and outlook | @84 | Append | 15, Breedon Group ple Annual Results 2024 Group highlights | Financial rev Great Britain Resilient performance Challenging market conditions Aggregates Asphalt Concrete . million tonnes million tonnes million m? ~ Robust infrast
Slide 17: Ireland
Breedon Group ple Annual Results 2024 Ireland Strong performance in a supportive market Positive market conditions = Rol; healthy economic landscape and tendering levels = NI; stable with sentiment improving Excellence in action ~ Restructuring and structured approach to tendering delivered margin e
Slide 18: Cement
Breedon Group ple Annual Results 2024 Group highlights | Financ Cement Strong margin performance and delivery of major capital projects Market headwinds, challenging weather conditions = Resilient infrastructure demand offset by slowdown in GB housebuilding = Volumes impacted by exposure to GB ready
Slide 19: United States
Breedon Group ple Annual Results 2024 Group hiahights | Financial review | Operational feview | Acauisition ofLionmark | Summary and outlook | Q&A | Appendix | 18 United States Encouraging initial contribution Successful entry into the US Aggregates concrete) 5 . . . . illion t million m = Third geo
Slide 20: US$238m acquisition of Lionmark
- By Breedon Group ple Annual Results 2024 |. Group highlight) Financial review | Operati h a 3. * ¥ US$238m acquisitie of Lionmark ry and outlook *|
Slide 21: Lionmark Acquisition
2 Breedon Group ple Annual Results 2024 Group highlights ISiiOMOREIORMeN | Summary and outlook ji) Q&A | Appencn{” 20) Lionmark Acquisition Earnings enhancing transaction to scale and diversify our US business Leading regional construction Sera Gls materials and surfacing business Revenue % Headquar
Slide 22: Lionmark at a glance
Breedon Group ple Annual Results 2024 Group highlights | Financial Lionmark at a glance Significant operations in Missouri, Texas and Arkansas Multi-state surfacing operations Supported by Sales volumes m tonnes p.a. Reserves & Resources Quarries cl OOmt Asphalt Plants 0.9 8 07 Bitumen terminal 4 1
Slide 23: Attractive infrastructure end markets
Group highlights | Financial review | Operational review er Summary and outlook | Q&A | Appendix | 22 Breedon Group ple Annual Results 2024 Attractive infrastructure end markets Structural tailwinds supporting investment Missouri has 6th largest road network in the US MoDOT construction project Midw
Slide 24: Lionmark financials
Acquisition of Lionmark BR Breedon Group ple Annual Results 2024 Group highlights | Financial review | Operational review summary and outlook | Q&A | Appendix | 23 Lionmark financials Growth opportunities at a compelling valuation Highlights 2024 financials! Revenue by state Revenue growth us$m 178
Slide 25: Key metrics and funding
B® Breedon Group ple Annual Results 2024 SumnmBly and outlook | 8A | Apenix | 24 , ® Retaining a Key metrics Funding - Immediately earnings enhancing - ROIC forecast to cover WACC by end of 2027 - Pro-forma leverage of 1.9x in line with our financial framework - Completion expected by 7 March - Fina
Slide 26: 2025 technical guidance
summary and outlook | Q&A | Appendix | 25 Acquisition of Lionmark Breedon Group ple Annual Results 2024 Group highlights | Financial review | Operational review 2025 technical guidance Lionmark Guidance wore Group Guidance —— a Consolidated for 10 months of 2025 Income statement Transaction & integr
Slide 27: Summary and outlook
Slide 28: Positioned for profitable growth
Breedon Group ple Annual Resu {dhoubvcivahish PBasrarcal Sparstiond obi | Acauiston of gene ¢ Surwpan)and outlook | 0&4 | Apoendx | 27 : » Positioned for profitable arowth ER OE Confident 2024 shoullfpresent a floor in cotati dg materials‘activity we ; x ‘ » % MS Bay \ q { a : N ti = Structural long
Slide 29: Your questions
Breedon Group ple Annual Results 2024 | Group highights | Financial review | Operational review | Acquisition of Lionmark {” Sue Your quesiias:
Slide 30: Appendix
Slide 31: 2024 divisional EBIT contributions
Breedon Group ple Annual Results 2024 Group highiahts | Financiel review | Operational review | Acquisition of Lionmark | Summary and outlook | Q&A pasa 30 2024 divisional EBIT contributions Improving Underlying EBIT margins Revenue Underlying EBIT Great Britain Ireland United States Cement Group £9
Slide 32: Financial KPIs
Breedon Group ple Annual Results 2024 Group highlights | Financial review Operational review | Acquisition of Lionmark | Summary and outlook | Q&A Appendix 31 Financial KPls Revenue Underlying EBITDA Margin Underlying EBIT Margin Adjusted Underlying Basic EPS £million % pence 1,576.3 171 11.0 34.4 2
Slide 33: Our track record: non-financial KPIs
Breedon Group ple Annual Results 2024 Group highlights Our track record Non-financial KPIs Combined LTIFR per million hours worked 3.3 Combined TIFR per million hours worked 17.7 Financial review Operational review | Acquisition of Lionmark Reserves and resources billion tonnes 1.4 Appendix 32 Summa
Slide 34: Consolidated income statement
Operational review | Acquisition of Lionmark | Summary and outlook | Q&A pasa 33 Breedon Group ple Annual Results 2024 Group highlights | Financial For the year ended 31 December 2024 Consolidated income statement £ million 2024 2023 Revenue 1,576.3 1,487.5 Underlying EBITDA 269.9 242.3 Depreciation
Slide 35: Balance Sheet
Operational review | Acquisition of Lionmark | Summary and outlook | Q&A [ees | 34 Breedon Group ple Annual Results 2024 Group highlights | Financial review For the year ended 31 December 2024 Balance Sheet £ million 2024 2023 Property, plant and equipment 939.1 817.2 Right-of-use assets 46.5 451 In
Slide 36: Free Cash Flow
BBM ereedon Group ple Annual Results 2024 Cousens al tars eves | oetetoral Saaee Peeatten st lovrerty stray selene [ices pasa 35 For the year ended 31 December 2024 Free Cash Flow £ million 2024 2023 Underlying EBITDA 269.9 242.3 Working capital and provisions (16.6) (8.5) Net interest paid (17.6) (
Slide 37: Long-term committed borrowing facilities
Breedon Group ple Annual Results 2024 Group highlights | Financial review | Operational review | Acquisition ofLionmark | Summary and outlook | GBA rood 36 Long-term committed borrowing facilities RCF upsized to £400m and maturity extended; additional USPP issued post year end Debt finance positione
Slide 38: Three major capital projects
BBM ereedon Group ple Annual Results 2024 Group hishohts | Frencalrevew | Operational revew | Acqustio oflionnark | Summayandoucck | ox i 37 Three major capital projects All substantially completed on schedule and within budget
Slide 39: Our capital allocation model
38 Appendix Group highlights | Financial review | Operational review | Acquisition of Lionmark | Summary and outlook | Q&A Breedon Group ple Annual Results 2024 Our capital allocation model Investment as a differentiator AA 4 A Maximise value through Proactive investment Meeting strategic capital de
Slide 40: Our evolving financial framework
Appendix 39 BBM ereedon Group ple Annual Results 2024 edeininis emenicin, Recor | ee etcwemen | oases (| om Our evolving financial framework Financial metrics aligned to our strategy Growth Revenue > Outperforms our markets Profitability Underlying EBITDA margin > 17.5% - 20.5% Underlying EBIT margi
Slide 41: Sales mix
Breedon Group ple Annual Results 2024 Group hightights | Financial review | Operational review sition of Lionmark | Summary and outlook | G84 |fMAppendie 40 Sales mix Geography Division Product! mUK 78% @ Great Britain 59% MInfrastructure c.50% @ Aggregates 30% @Rol 12% Bi lreland 14% m Residential
Slide 42: Disciplined cost management
Breedon Group ple Annual Results 2024 Group highlights | Financ Disciplined cost management Flexible cost base supported by forward hedging programme 35% Materials & other direct costs = Includes imported cement, bitumen, subcontractor and direct mineral costs = Significantly lower cost inflation 21
Slide 43: Moderating input cost inflation
BB Breedon Group ple Annual Results 2024 | Group highlights | Financial review | Operational review | Acquisition of Lionmark | Summary and outlook | Q&A pasa 42 Moderating input cost inflation Managed through layered hedging approach and dynamic pricing UK Electricity Bitumen Carbon 900 140 160 800
Slide 44: MPA volumes
Breedon Group ple Annual Results 2024 Group highlights | Financial review | Operational review | Acquisition ofLionmark | Summary and outlook | GBA rood 43 MPA volumes MPA Aggregates 170 volumes 150 (million 130 tonnes: > 0 TF 10% 90 2005 2006 2007 2008 2009 2010 201 2012 2013 «2014 «2015 2016.) 201
Slide 45: Asset base and local model as inflation hedge
Breedon Group ple Annual Results 2024 Group highlights | Finan Operational review | Acquisition of Lionmark | Summary and outlook | Qs [Append 44 A t ici t inflati Asset base and local model provide a natural inflation hedge Aggregates markets supply GB - million tonnes Aggregates markets supply US
Slide 46: Market consensus
Breedon Group ple Annual Results 2024 Market consensus Company compiled as at 27 February 2025 Group highlights | Financi Operational review Acquisition of Lionmark Summary and outlook | Q&A |]TAppEnGIx: 45 2024 2025 Value Range Value Range Revenue £1,602m £1,569m-£1,667m £1,693m £1,651m - £1,774m U
Slide 47: An outstanding track record of sustainable growth
BR Breedon Group ple Annual Results 2024 Group hightio Financial review | Operational review | Acquisition of Lionmark | Summary and outlook | @3 |iAppengBe 46 An outstanding track record of sustainable growth Breedon Six bolt-on Lagan Cemex Nine bolt-on | BMC transactions UK assets | transactions R
Slide 48: Making a material difference
47 Appendix Operational review | Acquisition of Lionmark | Summary and outlook | Q&A Breedon Group ple Annual Results 2024 Group highlights | Financial rev Making a material difference To be a leading, vertically-integrated international construction materials group Breedon’s Vision To be a leading,
Slide 49: Forward looking statement
Breedon Group ple Annual Results 2024 Group highlights | Financial review | Operational review | Acquisition ofLionmark | Summary and outlook | Q&A pasa 48 Forward looking statement The information contained in this presentation document (the “presentation”, which term includes any information provi