Breedon Group PLC · LSE:BREE
Breedon — Investor Day (October 2023)
27 slides from Breedon's investor day presentation, Oct 3, 2023
Slide 1: Wickwar Quarry Investor site visit
Wickwar Quarry Investor site visit 3 October 2023
Slide 2: Forward looking statement
Forward looking statement The information contained in this presentation document (the “presentation”, which term includes any information provided verbally in connection with this presentation document) does not constitute an offer or solicitation to hold, sell or invest in any security and should
Slide 3: Agenda
Agenda Welcome Strategy for Excellence in Surfacing Investing for Q&A Success Action New Markets Growth and Rob Wood, Mike Pearce, Tim Billingham, Mark Butler, James Brotherton, Chief Executive Managing Director Regional Commercial Chief Financial Safety Officer GB Materials Managing Director Direct
Slide 4: Growth outpacing our markets
Growth outpacing our markets Successfully converting profits to cash Six bolt-on CEMEX Six bolt-on Breedon transactions Hope Lagan UK assets transactions 2011* 2012* 2013* 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 UK 87% Rol 13% £169m Revenue CAGR 21% £1,396m £6m Underlying EBIT CAGR 34% £15
Slide 5: Sustainable growth strategy
Sustainable growth strategy Making a material difference Sustain Sustainability considerations guide all of our decisions Optimise Continuously improving efficiency Expand Through organic and inorganic growth Financial framework Supporting our strategy through investment and capital allocation 5 Bre
Slide 6: Delivering growth sustainably
Delivering growth sustainably Balanced portfolio operated by our first-class team Asset-backed model Highly-engaged team One billion tonnes of mineral reserves Over 3,800 colleagues delivering and resources, two cement plants excellent customer service growth model Sustainable Vertically-integrated
Slide 7: Strategy for Success
Strategy for Success Mike Pearce, GB Materials Managing Director 7 Breedon Investor Day and Site Visit • October 2023
Slide 8: Vertically-integrated model
Vertically-integrated model Growing profitably. Maximising returns Maximising value from quarry to customer • Drawing material through the model enhances margins and returns Supplying local markets driven by regional dynamics • Local sales and distribution mirrors the local market • Teams empowered
Slide 9: GB Materials: Building on success
GB Materials: Building on success Maturing a business formed through acquisition Our Intent To become a top 3 aggregate, asphalt and ready-mixed concrete supplier in GB Strategic Priorities Optimise Expand Sustain Deliver our Do more for Grow markets & Eliminate work-related Secure mineral Net zero
Slide 10: Strategy in action
Strategy in action Layered on a fundamental operating principle 10 Breedon Investor Day and Site Visit • October 2023
Slide 11: Ensuring operational excellence
Ensuring operational excellence Continually improving GB Materials Operational approach • Plant optimised across the process • Proactive plant maintenance • Investing wisely to improve our estate Changing the culture • New roles implemented to embed best practice • Operational improvement targets at
Slide 12: Commercial excellence; the key to success
Commercial excellence; the key to success Capturing local market value Team • Capable and experienced senior team • Clear responsibility and accountability • Enhanced with the addition of new specialist roles Restructured • Business structures realigned under two regional MDs • Local expertise and k
Slide 13: Excellence in Action
Excellence in Action Tim Billingham, GB Materials Regional Managing Director, Wales & South 13 Breedon Investor Day and Site Visit • October 2023
Slide 14: Wickwar Quarry
Wickwar Quarry What you will see today Active quarry for over 100 years • Acquired in 2020 as part of the Cemex Asset transaction • Produces c.900,000 tonnes annually • Reserve life of 20 years with potential for further extensions Fully integrated downstream activities • Asphalt plant; over 115,000
Slide 15: Securing Wickwar's future
Securing Wickwar’s future Asset life extended Secure mineral Quarry extension reserves • 18m tonnes Maintain & expand Invested over £5m* in our mineral infrastructure resources & industrial assets • Cut & cover tunnel • Welfare facilities • Plant investment Operational Future proofing our excellence
Slide 16: Reducing waste responsibly
Reducing waste responsibly Leverage our local network Grow markets Recycled materials & geographical • Creating marketable coverage products from by-products and waste Responsible Repurpose assets use of natural • Utilise exhausted quarries resources & for landfill reduced waste Develop innovative L
Slide 17: Using our natural resources responsibly
Using our natural resources responsibly Through innovative new products Net zero by 2050 Breedon Balance Lower carbon Incorporates • Continuously enhance footprint than a recycled generic market content in the products with sustainable equivalent product attributes Products that Create a sustainable
Slide 18: Diversifying into new markets
Diversifying into new markets Supporting Surfacing Solutions Grow markets & Airport surfacing geographical • Rapid growth coverage • Underserved market Right product, Highly specialised materials right time & • Complex technical optimal price requirements Transport & • Reliable logistics essential W
Slide 19: Surfacing New Markets
Surfacing New Markets Mark Butler, Surfacing Solutions Commercial Director 19 Breedon Investor Day and Site Visit • October 2023
Slide 20: Surfacing Solutions in action
Surfacing Solutions in action Pulling through GB materials Our intent Drive sustainable growth through a portfolio of GB surfacing businesses Strategic priorities Optimise Expand Sustain Grow through our Attain a balanced Align to client’s net Outcomes Deliver our financial targets market share inte
Slide 21: Multiple routes to market
Multiple routes to market Meeting a broad spectrum of client needs Surfacing Solutions Aviation Scotland England Wales Strategic authorities, national clients, Local councils, developers, regional Shire counties, Tier 1 contractors contractors and spot tenders 21 Breedon Investor Day and Site Visit
Slide 22: Aviation; significant project pipeline
Aviation; significant project pipeline Seamlessly meeting our clients’ needs Underserved market • Requires highly specialised capability • Reliable supply of technical materials • Working in close collaboration with the main contractor and / or the client • Significant project pipeline; Government a
Slide 23: Investing for Growth
Investing for Growth James Brotherton, Chief Financial Officer 23 Breedon Investor Day and Site Visit • October 2023
Slide 24: Investment as a differentiator
Investment as a differentiator Thoughtful approach to capital allocation Maximise value Investment Strategic Excess through capital opportunities objectives Capital deployment ORGANIC Reserves and resources Profitable growth Dividends Business investment Disciplined Margin capital deployment improve
Slide 25: Appendix
Appendix Breedon site visit 2023 25 Breedon Investor Day and Site Visit • October 2023
Slide 26: Strategic priorities in action
Strategic priorities in action Our framework for excellence Optimise Expand Sustain Carefully manage assets Organic investment Sustainability framework: Planet, People, Places, Principles Continually improve processes Bolt-on acquisitions GB Promote sustainability culture Materials Land management N
Slide 27: Operating in line with our core principles
Operating in line with our core principles Maximising the return on every tonne of material we produce Our Purpose Our Vision To make a material difference to the lives of To be a leading vertically-integrated our colleagues customers and communities international construction materials group Our Va