Galliford Try Holdings Plc · LSE:GFRD

Galliford Try — Investor Presentation (May 2022)

46 slides from Galliford Try's investor presentation, May 10, 2022

  1. Slide 1: Drivers of Sustainable Growth

    Drivers of Sustainable Growth Business Briefing 10 May 2022

  2. Slide 2: Today's speakers & agenda

    Today’s speakers & agenda Introduction Environment Financial Sectors Carbon Summary strength & Q&As Bill Hocking Steve Slessor Andrew Duxbury Ian Jubb Poppy Parsons Bill Hocking Chief Executive Managing Director Finance Director Managing Director Low Carbon Lead Chief Executive 2

  3. Slide 3: A platform for sustainable growth

    A platform for sustainable growth 2016-2020 2020-2021 2021-2026 RETAIN, TRANSITIONAL SUSTAINABLE IMPROVE, YEAR GROWTH DELIVER STRATEGY Focus on culture and Establishing GT as a Controlled margin embedding best leading standalone and revenue practices. construction group. growth. 3

  4. Slide 4: An engine for growth

    An engine for growth High-quality order book Strong culture of Good discipline visibility of and risk People pipeline awareness Strong balance sheet 4

  5. Slide 5: People-orientated, progressive culture

    205 trainees, apprentices and 3,300 talented People-orientated, Focus on graduates and passionate inclusion employees -10.7% gender pay gap in early careers Six nominees progressive culture for Ex-Forces Investment in GT Academy Awards learning and development Planned succession Gold Award through E

  6. Slide 6: Sustainable Growth Strategy

    Sustainable Growth Strategy A people-orientated, progressive Deliver excellence for our clients. culture driven by our values. . Clients Health and safety Progressive Quality and culture Strategy innovation Supply chain Our people Deliver high-quality buildings and infrastructure in a socially respo

  7. Slide 7: Delivering Sustainable Growth

    Delivering Sustainable Growth Sustainable revenue and margin growth Adjacent markets  Disciplined growth in existing markets. Existing markets 2026  Develop Revenue Revenue complementary adjacent market £1.1bn £1.6bn Margin Margin opportunities. 2.0% 3.0%  Maintain focus on risk management and co

  8. Slide 8: Our key business divisions

    Our key business divisions Revenue Order book £329.2m Building 41% Building £1.1bn £3.4bn Infrastructure 59% Infrastructure £789.2m At 30 June 2021 At 31 December 2021 8

  9. Slide 9: Steve Slessor, Managing Director of Environment

    Steve Slessor Managing Director of Environment 9 Uttlesford Bridge

  10. Slide 10: Drivers of market growth

    Drivers of market growth Market drivers Investment  Ageing asset base means infrastructure is in need of replacing or that Ageing asset base maintenance/refurbishment must be carried out more frequently. £4bn pa  Increasingly stringent environmental regulations. Carbon reduction  Clients are look

  11. Slide 11: Sustainable growth opportunities

    Sustainable growth opportunities Existing and adjacent markets 3% Galliford Try growth 20% 7% 5% potential 7% £5.1bn 49% 100% Now 24% 85% Future Water sector spend per annum Galliford Try water revenue by (available to contractors) capability – 2021 Design & Build Programmes Design & Build Programme

  12. Slide 12: Existing markets

    Existing markets Design and build  Established position as a key partner of clients in the Environment sector.  Partnering with many of the leading regulated companies to assist with their long-term asset management plans.  Operating within 5+ year frameworks in AMP7 and SR21.  85% of existing b

  13. Slide 13: 4) em TENE

    Qe 4) em TENE ‘ | A fs "

  14. Slide 14: A unique position

    Our Environment business A unique position  nmcn water acquisition (including Lintott): • Increased our geographic coverage through established frameworks. • Enhanced our capabilities in maintenance and asset optimisation. • Now operating as a single integrated business.  We are now one of the big

  15. Slide 15: Margin enhancing capabilities

    Margin enhancing capabilities Engineering services Off-site solutions Capital maintenance Asset optimisation  Optimise delivery of high  Grow in-house fabrications  Organic growth from  Development of Lintott margin consultancy by leveraging existing existing frameworks and products and services

  16. Slide 16: Slide 16

  17. Slide 17: Financial strength, Andrew Duxbury

    Financial Andrew strength Duxbury Finance Director 17 Dandara PRS scheme, Birmingham

  18. Slide 18: Balance sheet and capital allocation

    Balance sheet Supporting operational  Competitive advantage in chosen markets, providing confidence to clients and capital requirement  and supply chain. Enables strategic and bolt-on allocation opportunities to enhance capabilities. Mitigating market  Maintain cash reserves to mitigate any risks

  19. Slide 19: Progress on prompt payment

    Average days to pay Progress on 50 45 49 prompt 40 38 38 37 36 35 30 26 payment 25 20 15 June 19 Dec 19 June 20 Dec 20 June 21 Dec 21  Commitment to prompt payment. Invoices paid within 60 days  Performance improved ahead of industry average. 100% 98% 94% 95% 90% 92% 90% 87% 85% 80% 74% 75% 70% Ju

  20. Slide 20: Advantage through Alignment

    Advantage through Alignment Strategic areas of focus  Improved outcomes for supply chain and Galliford Try. Long-term Early Training Better Payment  Opportunity to certify relationships and greater levels of engagement and support communication transparency relationship to ISO 44001. collaboration

  21. Slide 21: Managing inflation

    Managing inflation Strong financial Bidding processes Project management Disciplined culture position  Appropriate risk  Matrices of key  Strong culture focused  Strong cash position. allowances in all tenders. material lead times. on risk management.  Well-secured forward  Contract terms to a

  22. Slide 22: Managing inflation

    Managing Portfolio effect mitigates inflation risk inflation  Portfolio effect across multiple projects and supplier packages mitigates impact of inflation.  Focus on early procurement.  Risk further mitigated through contractual terms and inflation allowances. 22

  23. Slide 23: Our sectors, Ian Jubb

    Our sectors Ian DEEP DIVE Our sectors Jubb Managing Director of Building 23 Newman Catholic School

  24. Slide 24: Our sectors

    Our sectors Defence Custodial and Judicial Education Health Commercial Facilities Management Private Rented Sector Highways 24

  25. Slide 25: Drivers of market growth

    Drivers of market growth Investment in the UK’s social Levelling Up agenda Urgency of climate crisis Innovation and productivity and economic infrastructure Examples of funding streams Various prison Department for New Hospitals Defence Estate Road Investment transformation Education Rebuilding Prog

  26. Slide 26: Government procurement aims

    Government procurement aims Greener, better, faster delivery Construction Playbook  Favours long-term contracting across portfolios.  Drives innovation and the adoption of Modern Methods of Construction (MMC).  Push for standardised designs, components, and interfaces.  Creates sustainable, effe

  27. Slide 27: Delivering through frameworks

    Delivering through frameworks Improved risk allocation: Order book by client type 87%  Established and well-understood terms and Work in frameworks £3.2bn £3.3bn £3.4bn (HY21: 87%). conditions. 3.5 9% 10%  Long-term client relationships. 3.0 19% 2.5  Predictable behaviours. 2.0 <£20m £bn  Certai

  28. Slide 28: Disciplined contract selection

    Disciplined Bid opportunities contract Initial consideration selection Heat map Assessing and managing risks and uncertainties is the central BU approval element of our process and key to delivering sustainable growth. Exec approval (if needed) Bids selected 28

  29. Slide 29: Quality based tendering

    Quality based tendering What our clients look for Indicative scoring criteria Management 24% People-orientated, 20% Project Delivery 20% progressive culture Health, Safety and Environment 6% Quality Quality 6% and innovation 80% Sustainability and Carbon 6% Socially responsible delivery Social Value

  30. Slide 30: Margin drivers

    What will we do Margin differently to grow margin? drivers  Drive down waste. • Process inefficiency: waste Existing markets design, resource, materials, get it right first time.  Digital investment to drive Winchburgh schools 2% 1% efficiency.  Use of Modern Methods of Construction.  Investment

  31. Slide 31: Carbon, Poppy Parsons

    Carbon Poppy Parsons Low Carbon Lead 31

  32. Slide 32: Our Journey to Net Zero

    Our Journey to Carbon dioxide equivalent emissions (Scope 1 and Scope 2) Net Zero 35,000 30,000 43% electric/PH vehicles. 25,000 Tonnes CO2e 20,000 62% Renewable energy for offices. 15,000 10,000 Electric/alternatively fuelled plant. 5,000 Earlier grid connections. 0 Agile working. Net zero across:

  33. Slide 33: Low carbon

    Low carbon A driver for winning work  Increasingly becoming a requirement for framework appointments – our investment is a key driver of business growth.  Clients increasingly focused on net zero carbon in-use and also whole- life carbon.  Life-cycle budgets can capture cost savings generated fro

  34. Slide 34: Our client's Journey to Net Zero

    Our client’s Journey to Net Zero 2017 Framework Objectives 2021 Framework Objectives Proposed 2025 Specification 20 with Sustainability Annex Specification 21 Specification 25 NetZero Pilot Projects NetZero Carbon in Operation Target Absolute 0 Target NetZero Carbon in Operation Report on Embodied C

  35. Slide 35: Designing for low carbon

    Designing for low carbon Energy Use Intensity Breakdown kWh/yr/m2 GIA Standard Standard DfE target GT ability school in 2016 school in 2020 Heating Hot water Internal lighting Fans and pumps Cooling Lifts Building-related services External lighting Small power 35

  36. Slide 36: Delivering low carbon

    Delivering low carbon Blackridge Early Years Centre  First early years learning building in Scotland to be built to Passivhaus Certification standards.  Nursery was developed alongside another early years centre, spatially identical but built traditionally.  Direct comparison on process, construc

  37. Slide 37: Digital tools to manage carbon in design and build

    Digital tools to manage carbon in design and build Unreduced Carbon Reduced Unreduced Reduced 37

  38. Slide 38: Net Zero Partners

    Net Zero Partners Aligned supply chain  Collective effort to move our clients to net zero.  Net Zero Partners supports the upskilling of our Aligned supply chain.  Also allows us to learn from them.  Launched across our Scottish brand (Morrison Construction) and being rolled out Group-wide. 38

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  40. Slide 40: Summary, Bill Hocking

    Summary Bill Hocking Chief Executive 40

  41. Slide 41: Delivering Sustainable Growth

    Delivering Sustainable Growth Sustainable revenue and margin growth Adjacent markets  Disciplined growth in existing markets. Existing markets 2026  Develop Revenue Revenue complementary adjacent market £1.1bn £1.6bn Margin Margin opportunities. 2.0% 3.0%  Maintain focus on risk management and co

  42. Slide 42: Summary

    Summary High-quality order book Strong culture of Good discipline visibility of and risk People pipeline awareness Strong balance sheet 42

  43. Slide 43: Sustainable financial performance

    Sustainable financial performance Objective 2026 target Progress at HY22 Divisional operating margin growth to Focus on bottom line margin growth. Margin increased to 2.2%. 3.0%. Disciplined contract selection and sustainable Revenue growth towards £1.6bn. HY22 revenue up 10%. revenue growth. Mainta

  44. Slide 44: Summary

    Summary Sustainable Growth Strategy on track  Market conditions that support growth. Progressive Quality and culture Strategy innovation  Investment in excellent people. Deliver high-quality buildings and infrastructure  Business culture and process that will deliver in a socially responsible way

  45. Slide 45: Questions & answers

    Questions & answers Carronflats Sewer Scheme, Grangemouth 45

  46. Slide 46: Galliford Try attendees

    Galliford Try attendees E E E PeterVentress Bill Hocking Andrew Duxbury Kevin Corbett Chair Chief Executive Finance Director General Counsel & CoSec E E E Ian Jubb Vikki Skene Mark Baxter Steve Slessor Building MD HR Director Investments, FM and Environment MD Specialist Services MD David Lowery Pop

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