Slide 1: First Quarter Results Presentation
FY2023 First Quarter Results Presentation RESULTS TO October 31, 2023
Slide 2: Legal Disclaimer
Legal Disclaimer Cautionary note on forward-looking statements Certain information included in this presentation and discussed on the conference call that this presentation accompanies is forward-looking, including w ithin the meaning of the Private Securities Litigation Reform Act of 1995, and invo
Slide 3: Highlights and introduction
01 Highlights and introduction Kevin Murphy, CEO •Kevin Murphy, CEO
Slide 4: First quarter financial highlights
First quarter financial highlights Net sales ($m) Adjusted operating profit* ($m) Adjusted EPS – diluted* 7,931 $2.95 7,708 864 6,803 $2.65 767 773 $2.50 5,372 $1.52 484 2021 2022 2023 2024 2021 2022 2023 2024 2021 2022 2023 2024 +26.6% +16.6% (2.8%) +58.5% +12.6% (10.5%) +64.5% +18.0% (10.2%) Solid
Slide 5: Balanced approach to US end markets
Balanced approach to US end markets Q1 2024 US net sales % of US net sales* (decline)/growth Residential 52% (7%) Non-residential 48% +2% Commercial 33% +2% Civil/Infrastructure 8% (1%) Industrial 7% +3% 100% (2.7%) Non-residential continues to outperform residential * Residential / Non-residential
Slide 6: USA first quarter net sales
USA first quarter net sales Q1 2024 Q1 2023 % of US net Customer group net sales net sales sales* (decline)/growth growth Residential Trade Plumbing 18% (12%) +15% HVAC 11% +4% +18% Residential Building and Remodel 14% (3%) +21% Residential Digital Commerce 8% (14%) +1% Waterworks 21% (1%) +27% Comm
Slide 7: Financial review
02 Financial review Bill Brundage, CFO •Kevin Murphy, CEO
Slide 8: First quarter financial highlights
First quarter financial highlights $m (except per share amounts) Q1 2024 Q1 2023 Change Net sales 7,708 7,931 (2.8%) Gross margin 30.2% 30.5% (30) bps Adjusted operating profit* 773 864 (10.5%) Adjusted operating margin* 10.0% 10.9% (90) bps Adjusted earnings per share – diluted* $2.65 $2.95 (10.2%)
Slide 9: USA first quarter
USA first quarter $m Q1 2024 Q1 2023 Change Net sales 7,329 7,532 (2.7%) Organic revenue (decline) / growth* (5.0%) +13.0% Adjusted operating profit** 766 845 (9.3%) Adjusted operating margin 10.4% 11.2% (80) bps Strong execution delivered solid adjusted operating margin * For f urther details regar
Slide 10: Canada first quarter
Canada first quarter $m Q1 2024 Q1 2023 Change Net sales 379 399 (5.0%) Organic revenue (decline) / growth* (3.3%) +8.2% Adjusted operating profit** 23 33 (30.3%) Adjusted operating margin 6.1% 8.3% (220) bps Challenging markets pressured adjusted operating margin * For f urther details regarding or
Slide 11: Cash flow – first quarter
Cash flow – first quarter $m Q1 2024 Q1 2023 Adjusted EBITDA* 819 912 Working capital (219) (357) Interest and tax (79) (86) Other items 36 32 Operating cash flow 557 501 Capex (91) (95) Proceeds from the sale of assets 7 2 Free cash flow* 473 408 Strong free cash flow generation * This is a non-GAA
Slide 12: Capital allocation
Capital allocation 1. Organic growth 2. Dividends 3. Acquisitions 4. Surplus capital returns Working capital • Quarterly dividend of $0.79 • Completed one acquisition • $108m share repurchases per share, an increase of 5% during the fiscal year completed during first quarter • Inventory position now
Slide 13: FY2024 Guidance (unchanged)
FY2024 Guidance (unchanged) • Net sales to be broadly flat • Assumes mid-single digit market decline with continued Company market outperformance, contribution from completed acquisitions and one additional sales day. • Overall impact of price inflation estimated to be broadly neutral for the year.
Slide 14: Closing remarks
03 Closing remarks Kevin Murphy, CEO •Kevin Murphy, CEO
Slide 15: Closing remarks
Closing remarks Thank you to our associates. 1. The year has started in line with our expectations, with solid Q1 performance. 2. FY2024 guidance unchanged. 3. Board is evaluating domiciling the Group’s ultimate parent company in the United States. 4. Balanced market exposure and agile business posi
Slide 16: Join us for Q&A
Join us for Q&A |e
Slide 17: Appendix
04 Appendix •Kevin Murphy, CEO
Slide 18: Leading positions in highly fragmented North American markets
Leading positions in highly fragmented North American markets ~75% of revenue generated from #1 or #2 market positions Residential Trade Plumbing HVAC $31b market 17% Share #2 Market Position ~$70b 5% Share $30b revenue with a market #3 Market Position Residential Building and Remodel $25b $30b mark
Slide 19: Reconciliation of Net Income to Adjusted Operating Profit and Adjusted EBITDA
Reconciliation of Net Income to Adjusted Operating Profit and Adjusted EBITDA Three months ended October 31, (In millions) 2023 2022 2021 2020 Net income $519 $595 $560 $335 Income from discontinued operations (net of tax) — — (25) (19) Income from continuing operations 519 595 535 316 Provision for
Slide 20: Net Debt:Adjusted EBITDA reconciliation
Net Debt:Adjusted EBITDA reconciliation Net debt comprises bank overdrafts, bank and other loans and derivative financial instruments, excluding lease liabilities, l ess cash and cash equivalents. Long-term debt is presented net of debt issuance costs. As of October 31, (In millions) 2023 2022 Long-
Slide 21: Adjusted EBITDA (rolling 12-month) reconciliation
Adjusted EBITDA (rolling 12-month) reconciliation Adjusted EBITDA is net income before charges/credits relating to depreciation, amortization, impairment and certain non-GAAP adjustments. A rolling 12-month adjusted EBITDA is used in the net debt to adjusted EBITDA ratio to assess the appropriatenes
Slide 22: Reconciliation of Net Income to Adjusted Net Income and Adjusted EPS - Diluted
Reconciliation of Net Income to Adjusted Net Income and Adjusted EPS - Diluted Three months ended October 31, 2023 2022 2021 2020 (In millions, except per share amounts) per share(1) per share(1) per share(1) per share(1) Net income $519 $2.54 $595 $2.84 $560 $2.51 $335 $1.48 Income from discontinue
Slide 23: Thank you
Thank you # FERGUSON