Slide 1: Marshalls
Marshalls Creatine Rettev Candscapes
Slide 2: Highlights
Highlights Half year Half year ended ended 30 June 2011 30 June 2010 % Revenue £177.2m £162.6m +9 EBITDA £22.9m £18.6m +23 Operating profit £13.7m £9.4m + 46 Profit before tax £12.2m £8.1m + 51 Basic EPS (continuing operations) 5.47p 3.29p + 66 Basic EPS (total operations) 2.96p 3.07p -4 Interim div
Slide 3: Revenue Growth
Revenue Growth £m 177.2 159.6 162.6 Revenue growth 9% Revenue Movement 2009 2010 2011 Revenue £m H1 2010 162.6 Working days: 1 fewer in H1 2011 (1.3) -1% 161.3 UK 11.9 +8% Overseas 4.0 +2% H1 2011 177.2 +9%
Slide 4: Revenue Analysis
Revenue Analysis Public Sector and Commercial Revenue z 60% of Group z Revenue up 10% z Price up 4%, volume up 6% Domestic Revenue z 40% of Group z Revenue up 8% z Price up 3%, volume up 5%
Slide 5: Profit for the Financial Period
Profit for the Financial Period 2011 2010 % £m £m Continuing Operations EBITDA 22.9 18.6 +23 Depreciation/Amortisation (9.2) (9.2) Operating profit 13.7 9.4 +46 Discontinued Operations (4.9) (0.4)
Slide 6: Margin Reconciliation
Margin Reconciliation Movement in Impact on Revenue Operating Margin Profit £m £m % 2010 169.8 8.8 5.2 Discontinued operations (7.2) 0.6 0.6 162.6 9.4 5.8 Working days: 1 fewer in 2011 (1.3) (0.4) (0.2) 161.3 9.0 5.6 Price increases to recover costs 5.8 (0.6) (0.6) Volume 6.1 1.0 0.4 Organic expansi
Slide 7: Free Cash Flow
Free Cash Flow Cash inflow arising from: 2011 2010 £m £m Operating profit 13.7 9.4 Depreciation and amortisation 9.2 9.2 EBITDA (continuing operations) 22.9 18.6 Discontinued operations (0.6) (0.4) EBITDA (total operations) 22.3 18.2 Net financial expenses paid (1.6) (0.8) Taxation (paid)/received (
Slide 8: Cash Flow
Cash Flow 2011 2010 £m £m Free cash flow 1.0 4.9 Capital expenditure (5.7) (5.6) Proceeds from sale of surplus assets 5.3 3.2 Investments and organic expansion* (4.5) - Disposals 0.5 - Movement in net debt (3.4) 2.5 Finance leases (0.2) - Movement in net debt (3.6) 2.5 Net debt at 1 January (66.8) (
Slide 9: Additional Information and Ratios
Additional Information and Ratios 2011 2010 Interest charge: Charge £1.4m £1.3m Cover 9.5 times 7.4 times Tax rate 12.4% 20.7% EPS: Continuing operations 5.47p 3.29p Total operations 2.96p 3.07p Dividend: 2009 Interim Announced 1.75p 1.75p Weighted average number of shares: 195.4m 195.5m Net asset v
Slide 10: Significant Borrowing Facilities
Significant Borrowing Facilities £m 220 200 Expiry Date Facility Cumulative 180 Facility 160 £m £m 140 Committed facilities: 120 Q3 2016 25 25 100 Q3 2015 25 50 80 Q3 2014 20 70 60 Q1 2013 50 120 40 Q4 2012 25 145 20 0 On demand facilities: June 2011 Dec 2011 * Available all year 25 170 Seasonal (Fe
Slide 11: Solid Foundations
Solid Foundations Capacity Available Geographic Coverage Maintained Overtime Working 17% Latent Capacity 17% Operating 66% = 2 hours driving time
Slide 12: Sustainable Growth
Sustainable Growth Public Sector & Commercial - targeted marketing and product innovation Domestic - installer initiatives and distributor merchandising Overseas - specialist landscape products into selected markets
Slide 13: Public Sector & Commercial Targeted Marketing
Public Sector & Commercial Targeted Marketing
Slide 14: Public Sector & Commercial Product Innovation
Public Sector & Commercial Product Innovation METROLINIA CELESTIA “Contemporary paving ranges designed to provide stunning visual for urban developments”
Slide 15: Public Sector & Commercial Cotswold Limestone Walling
Public Sector & Commercial Cotswold Limestone Walling Cotswold Cream Cotswold Gold
Slide 16: Domestic Market Installers
Ja 1300 1400 1500 1600 1700 1800 n- 08 M ar - 08 M ay - 08 Ju l-0 8 Se p- 08 N ov -0 8 Ja n- 09 M ar - 09 M ay - 09 Ju l-0 9 Se Installers p- 09 N Customer service remains excellent ov -0 9 Ja n- 10 M ar - Domestic Market 10 M ay - 10 Marshalls Register - Installer Teams Ju l-1 0 Se p- 10 N ov -1 0
Slide 17: Domestic Market Trade Marketing Support
Domestic Market Trade Marketing Support
Slide 18: Overseas Markets
Overseas Markets z Organic expansion into Western Europe to provide incremental growth z Natural sandstone, granite and limestone from India and China z Specialist manufactured products and street furniture from the UK z 2009/10 ethically sourced natural sandstone into Switzerland and Austria throug
Slide 19: Market Outperformance
Revenue Per Day MAT Market Outperformance 100.0 96.0 Index (2008 = 100) 92.0 88.0 84.0 80.0 n n n g g ct ct r r r 8 b 9 b 0 b Ap Ap Ap Ju Ju Ju Au Au -0 Fe -0 Fe -1 Fe O O ec ec ec D D D Domestic Public Sector & Commercial
Slide 20: New Work Sales Lead Indicator
£millions Ja 110 275 55 165 220 330 n- 05 Ju l- 0 5 Ja n- 06 Ju l- 0 6 Ja n- 07 Ju l- 0 7 Ja n- 08 Ju l- 0 8 End Market Ja n- 09 Ju l- 0 9 Ja n- 10 Ju l- 1 0 Ja n- 11 Ju Public Sector and Commercial l- 1 1 Ja n- 12 New Work Sales Lead Indicator MAT Ju l- 1 2
Slide 21: Consumer Confidence and Installer Order Books
Domestic Market Consumer Confidence and Installer Order Books Rolling 6 Months Consumer Confidence v Installer Order Book (3 Month Lag) - 10.0 Ap 5 Ap 6 Ap 7 Ap 8 Ap 9 Ap 0 Ap 1 O 5 O 6 O 7 O 8 O 9 O 0 O 1 5 Ja 5 6 Ja 6 7 Ja 7 8 Ja 8 9 Ja 9 0 Ja 0 1 1 l- 0 l- 0 l- 0 l- 0 l- 0 l- 1 l- 1 0 r-0 0 r-0 0
Slide 22: Market Outlook
Market Outlook Expected Share of First Half Sales 2011 2012 Commercial 34% Public 26% Do it for me 30% DIY 6% New build 4% 100%
Slide 23: Summary
Summary Sales led company - well known brand and range of marketing and sales initiatives building on unique competitive advantages Financial flexibility - balance sheet robust and borrowings reduced Operational flexibility - modern, well invested factories with spare capacity Sector leading product
Slide 24: Appendices
oe “ocee” Marshalls Creaking Better Candseapes Appendices
Slide 25: Construction Products Association
Construction Products Association 2007 2008 2009 2010 2011 2012 2013 £m/% change Actual Actual Actual Actual Forecast Forecast Forecast Housing 20,920 17,273 13,774 16,588 16,886 16,790 17,409 -0.8% -17.4% -20.3% 20.6% 1.8% -0.6% 3.7% Other New Work 48,418 50,049 45,200 51,082 50,473 48,029 47,007 5
Slide 26: Historical Perspective
Historical Perspective Operating Capital Revenue Profit Margin Expenditure £000 £000 % £000 1990 181,447 28,630 15.8 36,143 1991 184,370 18,697 10.1 11,959 1992 174,355 17,317 9.9 3,786 1993 169,492 12,437 7.3 5,712 1994 191,495 21,683 11.3 20,384 1995 229,496 31,194 13.6 20,120 These are years ende
Slide 27: Financial Flexibility
Financial Flexibility H1 2011 Actual EBITA: Interest charge 6.3 times Net Debt: EBITDA 2.0 times z EBITA to interest charge must be greater than 2.5x z Net debt to EBITDA must be less than 3.0x z Net assets must be greater than £100 million
Slide 28: Pensions
Pensions Risk Management YE 20 2008 2000 closed to new members 2006 closed to future service accrual 10 2007 investment strategy 0 YE HY Investment Strategy 2010 2011 -10 H1 Moved from equities to LDIs 2008 YE Closer matching to liability profile of -20 2007 pension scheme H1 H1 -30 2010 Balance She
Slide 29: Net Assets
Net Assets £m £m 2010 Year End Net Assets 198.2 Impact of movements in year: Trading profit 5.8 Ordinary dividends (6.9) Actuarial movement on pensions (after tax) (2.3) Hedging reserve (0.1) Share based expenses 0.3 Foreign currency translation differences 0.3 Non-controlling interest 3.7 0.8 2011
Slide 30: Disclaimer
Disclaimer • For the purposes of the following disclaimer, references to this “presentation” shall be deemed to include references to the presenters’ speeches, the question and answer session and any other related verbal or written communications. • This presentation, which is personal to the recipi
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