Slide 1: Marshalls Full year 2024 results
Marshalls Building Tomorrow’s World Full year 2024 results 17 March 2025 1
Slide 2: Agenda
Agenda 01 2024 Summary 02 2024 Financial results 03 Strategy update 04 Summary and outlook 05 Q&A 2
Slide 3: 2024 Summary
= o _ ($) LL ” 2024 Summary
Slide 4: Best in class technical and design support
Best in class technical and design support Our purpose: Our strategy: Building Tomorrow’s World Transform & Grow Customers Carbon who value our Leading leadership unique set of brands capabilities Business excellence Leadership in ESG Great place to work Marshalls Full Year 2024 results 4
Slide 5: Resilient performance in 2024 with strong foundations in place to drive medium-term outperformance
Building Tomorrow’s World Resilient performance in 2024 with strong foundations in place to drive medium-term outperformance Resilient Group Positive and encouraging Disciplined focus on Group performance will performance reflecting performances in Roofing working capital benefit further in the deci
Slide 6: 2024 summary
Building Tomorrow’s World 2024 summary Landscaping Products Building Products Roofing Products Focused improvement actions gaining Returned to profit growth and is Strong performance that has traction, revenue growth expected in 2025 well positioned for 2025 continued into 2025 Marshalls Full Year 2
Slide 7: Landscaping performance improvement plan
Building Tomorrow’s World Landscaping performance improvement plan Drive greater value from distinctive national specification pull model Identified the core issues behind the underperformance. Implemented a comprehensive improvement plan in June 2024: Strengthen leadership and realign organisation
Slide 8: Landscaping performance improvement plan activity overview
Building Tomorrow’s World Landscaping performance improvement plan activity overview Action plans Key workstreams Timelines Q4 ‘24 Q1 ‘25 Q2 ‘25 Q3 ‘25 Q4 ‘25 Strengthen leadership Recruit senior commercial leadership talent Align commercial organisation to national and realign organisation specific
Slide 9: 2024 Financial results
SECTION 2024 Financial results 9
Slide 10: Financial headlines
Building Tomorrow’s World Financial headlines Reduction in PBT of 2% despite 8% decline in revenue £619.2m 8% 16.0p Adjusted Revenue basic EPS 4% Proposed £66.7m 8.0p Adjusted full year operating profit 6% dividend 4% Pre-IFRS Adjusted PBT £52.2m 2% 16 net debt £133.9m £39.0 million Note: Adjusted P
Slide 11: Group revenue
Building Tomorrow’s World Group revenue Revenue reduced by 8% year-on-year: rate of contraction slowed in H2 – Group revenue reduction of 8%, principally driven by Revenue (£'m) Landscaping: contraction slowed to 2% in H2 and revenue was flat in Q4 671.2 6.7 619.2 – Landscaping revenue contracted by
Slide 12: Group adjusted operating profit
Building Tomorrow’s World Group adjusted operating profit Profit growth in Roofing and Building Products was offset by a contraction in Landscaping – Operating profit stated after adding back adjusting Adjusted operating profit (£'m) items of £12.8 million, of which £10.4 million are non-cash charge
Slide 13: Landscaping Products
Building Tomorrow’s World Landscaping Products Reduced volumes and competitive pricing environment adversely impact profitability – Revenues contracted by 17% year-on-year with 2024 £’m Change % demand weakest for products used in new housing and housing RMI Revenue £268.3 17% • Rate of contraction
Slide 14: Building Products
Building Tomorrow’s World Building Products Revenue increased sequentially through H2 and delivered operating profit growth of 16% – Market conditions were tough during the year due 2024 £’m Change % to continued weakness in new housing – Revenue contracted by 3% Revenue 164.6 3% • Supported by pivo
Slide 15: Roofing Products
Building Tomorrow’s World Roofing Products Strong revenue and profit performance by Viridian Solar and a return to revenue growth for Marley in H2 – Continued weakness in new housing was offset by 2024 £’m Change % growth from Viridian Solar and the resilience of the housing RMI market Revenue 186.3
Slide 16: Adjusted profit before taxation and earnings per share
Building Tomorrow’s World Adjusted profit before taxation and earnings per share Contraction in operating profit largely offset by lower finance charges – Operating profit contracted by 6% to £66.7 million 2024 £’m Change % but increased year-on-year by 13% in H2 – Lower finance costs reflect reduct
Slide 17: Net debt
Building Tomorrow’s World Net debt Proactive management of cash flow results in £39 million reduction in pre-IFRS16 net debt – Strong cash conversion 106%: robust working capital Pre-IFRS 16 net debt bridge (£’m) management 0.0 – Finance and tax payments reduced YoY due to lower (20.0) borrowings an
Slide 18: Ongoing capital discipline
Building Tomorrow’s World Ongoing capital discipline Good control of working capital; medium-term target to rebuild ROCE to c.15%; progressive deleveraging – Continued focus on maintaining capital discipline 2024 £’m Change through active working capital management – Investment in inventory to be we
Slide 19: Capital allocation policy
Capital allocation policy Clear policy focused on optimising shareholder value 1 2 3 4 5 Investment to Organic enhance Balance sheet Selective Dividends growth competitive deleveraging acquisitions advantage Strategic plan Transform & Grow Maintain dividend No significant Selective bolt-on requires
Slide 20: Transform & Grow
SECTION Transform & Grow 20
Slide 21: Future growth is underpinned by a more diverse group with balanced exposure to our end markets
Building Tomorrow’s World Future growth is underpinned by a more diverse group with balanced exposure to our end markets End market exposure by revenue Reporting segments by revenue Landscaping Products Building Products Roofing Products 11% 29% 30% 30% 44% 47% 45% Marshalls 4% 42% 67% Group 2024 26
Slide 22: Marshalls has enviable market share positions with strong differentiated brand propositions
Building Tomorrow’s World Marshalls has enviable market share positions with strong differentiated Marshalls brand propositions and significant headroom for growth Other Landscaping Roofing Solar Water Management Bricks Concrete Natural stone Concrete and clay tiles In-roof Residential Infrastructur
Slide 23: Our Transform & Grow strategy requires each part of our business to deliver
Building Tomorrow’s World Our Transform & Grow strategy requires each part of our business to deliver against core strategic imperatives Portfolio role Business units Strategic imperative Marshalls Drive greater value from distinctive national specification pull model Landscaping Brand Powerhouses
Slide 24: Brand Powerhouses: Marshalls Landscaping
Building Tomorrow’s World Brand Powerhouses Drive greater value from distinctive national specification pull model Marshalls Landscaping Near term improvement plan Progress – Strengthen leadership and realign – Reduced rate of revenue decline in weak organisation market – Commercial and operationa
Slide 25: Brand Powerhouses: Marley Roofing
Building Tomorrow’s World Brand Powerhouses Strengthen roofing heartlands and drive share in adjacencies Marley Roofing Strategic priorities Progress – Optimise profit in social RMI heartland – Revenue growth continuing from H2 2024 – Drive market share in larger, relatively high margin private RM
Slide 26: Growth Engines: Viridian Solar
Building Tomorrow’s World Growth Engines Leverage regulatory tailwinds to accelerate growth Viridian Solar Percentage of New Homes built to the Part L Viridian Solar revenue growth 2022 - 2024 Percentage of homes with roof integrated solar 2021 Regulations 100% Percentage of Lodgments to SAP10 45 20
Slide 27: Growth Engine: Water Management
Building Tomorrow’s World Growth Engine Reposition to access growth and market headroom in water infrastructure Water Management Strategic priorities Progress – Access new growth and grow share – Order intake is strong and ahead of prior in water infrastructure year – Strengthen position in new hous
Slide 28: Growth Engine: Marshalls Bricks & Masonry
Building Tomorrow’s World Growth Engine Accelerate concrete adoption as lower carbon alternative Marshalls Bricks & Masonry Strategic priorities Progress – Drive share in new regions with – Facing brick share increased to c.7% national housebuilders Marshalls – Forward order book with housebuilders
Slide 29: Shareholder value creation: investment case
Building Tomorrow’s World Shareholder value creation: investment case Group positioned Profit growth Highly cash Free cash Profitable to outperform the delivered through generative flow de-levers growth increases construction market operational leverage business model balance sheet shareholder retur
Slide 30: Summary and outlook
SECTION Summary and outlook 30
Slide 31: Resilient performance in 2024 with strong foundations in place to drive medium-term outperformance
Building Tomorrow’s World Resilient performance in 2024 with strong foundations in place to drive medium-term outperformance Summary Outlook Resilient Group performance reflecting decisive management Expect a market recovery later this year, strengthening actions underpinned by a more diverse group.
Slide 32: Appendices
pale ah oo he ey os mei | ee APPENDICES
Slide 33: Funding and liquidity
Building Tomorrow’s World Funding and liquidity Material reduction in net debt with significant liquidity and covenant headroom – Syndicated bank facility of £315 million – Pre-IFRS 16 net debt (£’m) principally matures in April 2027 – Net debt of £169.3 million and £133.9 million on a pre-IFRS16 ba
Slide 34: Results summary
Building Tomorrow’s World Results summary Weak construction market results in reduced demand and modest contraction in profitability Change 2024 2023 % Revenue £619.2m £671.2m (8%) Adjusted results EBITDA £97.8m £103.6m (6%) Operating profit £66.7m £70.7m (6%) Profit before tax £52.2m £53.3m (2%) Ba
Slide 35: Adjusted profit before taxation and earnings per share
Building Tomorrow’s World Adjusted profit before taxation and earnings per share Bridge of reported result to adjusted result 2024 2024 2024 2023 2023 2023 £’m Reported Adjusting Adjusted Reported Adjusting Adjusted Operating profit 53.9 12.8 66.7 41.0 29.7 70.7 Net finance costs (14.5) – (14.5) (18
Slide 36: Adjusting items charged to profit before taxation
Building Tomorrow’s World Adjusting items charged to profit before taxation 2024 2023 £’m £’m 1. Amortisation of acquired intangible assets 10.4 10.4 2. Transformation costs 2.5 – 3. Additional contingent consideration 1.6 1.6 4. Significant property sale (1.7) – 5. Impairment charges, restructuring
Slide 37: Disclaimer
Building Tomorrow’s World 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