Slide 1: Full Year Results 2024/25
FULL YEAR RESULTS 2024/25 21 May 2025
Slide 2: 2024/25: A year of significant underlying progress
2024/25: A year of significant underlying progress Simon Pryce Chief Executive Officer 2 RS Group plc – 2024/25 Full Year Results
Slide 3: A year of significant underlying progress…
A year of significant underlying progress… 1. Executing more effectively 2. Performing as we should 3. Managing better what we control 4. Continuing strategic investment 5. Supporting long-term value creation …despite a difficult market backdrop 3 RS Group plc – 2024/25 Full Year Results
Slide 4: Executing more effectively
1. EXECUTING MORE EFFECTIVELY Executing more effectively… Leadership team - Strong and stable Strategic plan leadership team - Enhanced experience - Focused strategy Operating model / capabilities - Common objectives - Aligned and integrated action plan - Simplified and clarified Process focus OUTPU
Slide 5: Performing as we should
2. PERFORMING AS WE SHOULD Performing as we should… PMIs1 remain soft Continued share gains Example: EMEA Supplier Distribution Channel Share Gains 40% Industrial PMI (RS Weighted) 95 Suppliers Category Supplier Name Supplier 1 Supplier 2 Sales Rank 44 27 Share Gain 0.1% -6.0% Category Cables & Supp
Slide 6: Managing better what we control
3. MANAGING BETTER WHAT WE CONTROL Managing better what we control… VARIABLE AND FOCUSED GROWTH ACCELERATED DRIVING FIXED COST BALANCE SHEET ACCELERATORS INTEGRATION EFFICIENCY MANAGEMENT MANAGEMENT …demonstrating greater agility 6 RS Group plc – 2024/25 Full Year Results
Slide 7: Continued strategic investment
4. CONTINUING STRATEGIC INVESTMENT Continued strategic investment… Investment by strategic action Operational progress ✓ Improving data and tools Customers ✓ Enhancing customer understanding Customers Products and ✓ Accelerated new product introduction suppliers ✓ Strategic supplier programmes Produ
Slide 8: Financial operating performance for 2024/25
Financial operating performance for 2024/25 Kate Ringrose Chief Financial Officer 8 RS Group plc – 2024/25 Full Year Results
Slide 9: FY 2024/25 financial performance
FY 2024/25 financial performance… Revenue Adjusted operating Adjusted operating Adjusted profit Adjusted earnings (£m) (2)% LFL profit (£m) (8)% LFL profit margin (%) (0.7) pts LFL before tax (£m) (7)% LFL per share (p) (6)% LFL 306 10.4 275 2,942 2,904 274 9.4 248 42.9 39.1 23/24 24/25 23/24 24/25
Slide 10: Revenue broadly flat
Revenue broadly flat… Revenue (£m) 3,000 2,942 (62) 50 (66) 12 28 2,904 2,800 2,600 2,400 2023/24 Volume & mix Price Acquisitions FX Days 2024/25 inflation annualisation impact …impacted by market decline and FX 10 RS Group plc – 2024/25 Full Year Results
Slide 11: Tight cost control with £29m of annualised savings
Tight cost control with £29m of annualised savings… Adjusted operating costs (£m) (1,100) Restructuring Organic & integration One-off Restructuring Incentives investment benefits cost & integration Acquisitions Inflation FX (21) (7) (994) 29 benefits 1 costs (1,000) annualisation (24) 14 (965) 13 (1
Slide 12: Operating leverage benefits
Operating leverage benefits… Adjusted operating profit margin (%) 12% £13m one-off cost Restructuring benefits Organic 11% Volume/ mix & integration Inflation 0.5% (0.2%) (0.4%) benefits (0.8%) 10.4% Incentives Restructuring 1.0% (0.7%) FX 10% & integration 10.1% cost (0.1%) £9m cost 9.4% (0.1%) sav
Slide 13: EMEA: Strategic investment and integration progress
EMEA: Strategic investment and integration progress… HIGHLIGHTS Like-for-like Revenue performance reflects: 2024/25 2023/24 Change change – Weak industrial production and PMI across the region Revenue £1,777m £1,795m (1)% (3)% – UK deteriorated, France strong, German OEM1 / auto exposure Operating p
Slide 14: Americas: Strong growth in service solutions
Americas: Strong growth in service solutions… HIGHLIGHTS Restated1 Like-for-like Revenue performance reflects: 2024/25 2023/24 Change change – Returned to growth in Q4, following weak market in US & Revenue 2 £907m £934m (3)% 0% Canada – Strong performance in Mexico Operating profit £82m £89m (9)% (
Slide 15: Asia Pacific: Improving revenue performance
Asia Pacific: Improving revenue performance… HIGHLIGHTS Like-for-like Revenue performance reflects: 2024/25 2023/24 Change change – Improving momentum during the year Revenue £219m £214m 2% 0% – LFL growth in H2 with strong performance in Southeast Asia – Greater focus on industrial offer and high v
Slide 16: Driving cash generation
Driving cash generation… Adjusted free Working capital / Inventory turn £214m adjusted free cash flow: cash flow (£m) revenue (%) (x) – Adjusted operating cash flow conversion of 111% 214 25.0 2.6 2.7 23.9 (significantly exceeding our target rate of over 80%) 151 Working capital decrease due to: – I
Slide 17: A clear capital allocation policy
A clear capital allocation policy… 1 ORGANIC INVESTMENT 2 INORGANIC INVESTMENT 3 RETURNS TO SHAREHOLDERS ▪ Operating investment within ▪ Market environment creating ▪ Progressive dividend policy £35m – £45m guided range inorganic opportunities • +2% rise in 2024/25 total ▪ Capital expenditure c. £50
Slide 18: 2025/26 considerations
2025/26 considerations ▪ Gross margin broadly stable TARIFFS – LIMITED DIRECT IMPACT – Pricing discipline maintained ▪ Operating costs ▪ Minimal direct imports into RS Americas – Organic investment: lower end of guided range (£35m – £45m p.a.) ▪ Expect to pass on price increases – Cost inflation: c.
Slide 19: Significant strategic and operational progress
Significant strategic and operational progress Simon Pryce Chief Executive Officer 19 RS Group plc – 2024/25 Full Year Results
Slide 20: Our multi-year action plan
1. EXECUTING MORE 3. MANAGING BETTER 4. CONTINUING STRATEGIC EFFECTIVELY WHAT WE CONTROL INVESTMENT Our multi-year action plan… Customers Target high lifetime value customers who buy a broad mix of industrial MRO 1 products in small volumes Operational Products and excellence suppliers First choice
Slide 21: Developing our people capability
1. EXECUTING MORE 3. MANAGING BETTER 4. CONTINUING STRATEGIC EFFECTIVELY WHAT WE CONTROL INVESTMENT Developing our people capability… Operational STRATEGIC OBJECTIVE excellence Creating an inclusive and engaging environment where everyone is proud and excited to come to work, can perform at their be
Slide 22: Prioritising high potential customers
1. EXECUTING MORE 3. MANAGING BETTER 4. CONTINUING STRATEGIC EFFECTIVELY WHAT WE CONTROL INVESTMENT Prioritising high potential customers… Operational STRATEGIC OBJECTIVE excellence Focus on high lifetime value customers through harnessing data to better understand and serve customer needs with an a
Slide 23: Strengthening our technical product offer
1. EXECUTING MORE 3. MANAGING BETTER 4. CONTINUING STRATEGIC EFFECTIVELY WHAT WE CONTROL INVESTMENT Strengthening our technical product offer… Customers STRATEGIC OBJECTIVE Offer technically-led and specialist product ranges supported by strong supplier relationships FY25 ACHIEVEMENTS OUR FY26 PLANS
Slide 24: Focusing our solutions and services offer
1. EXECUTING MORE 3. MANAGING BETTER 4. CONTINUING STRATEGIC EFFECTIVELY WHAT WE CONTROL INVESTMENT Focusing our solutions and services offer… Products and STRATEGIC OBJECTIVE suppliers Deliver valued, scalable solutions which builds greater strategic engagement and drives product pull-through FY25
Slide 25: Investing to improve our customer experience
1. EXECUTING MORE 3. MANAGING BETTER 4. CONTINUING STRATEGIC EFFECTIVELY WHAT WE CONTROL INVESTMENT Investing to improve our customer experience… Solutions STRATEGIC OBJECTIVE Strengthen and tailor our customer experience to provide a digitally-enabled, seamless omnichannel service relevant for our
Slide 26: Improving infrastructure efficiency
1. EXECUTING MORE 3. MANAGING BETTER 4. CONTINUING STRATEGIC EFFECTIVELY WHAT WE CONTROL INVESTMENT Improving infrastructure efficiency… Experience STRATEGIC OBJECTIVE Delivering efficient physical, digital and process infrastructure, improved operating leverage and marginal drop-through FY25 ACHIEV
Slide 27: A significant value creation opportunity
A significant value creation opportunity Simon Pryce Chief Executive Officer 27 RS Group plc – 2024/25 Full Year Results
Slide 28: We are continuing to invest
4. CONTINUING STRATEGIC 5. SUPPORTING LONG-TERM INVESTMENT VALUE CREATION We are continuing to invest… Investment by strategic action Timetable of benefits FY25 FY26E FY27E FY28E FY29E Customers Customers Products and suppliers Operational Products and excellence Planned suppliers investment1 Soluti
Slide 29: Significant opportunity
5. SUPPORTING LONG-TERM VALUE CREATION Significant opportunity… 1. Well positioned for growth markets MEDIUM-TERM TARGETS 2. REVENUE GROWTH Differentiated proposition driving market share gains 2X MARKET 3. Investing to improve efficiency and operating leverage MID-TEEN OPERATING PROFIT MARGIN 4. Di
Slide 30: Questions?
Questions? 30 RS Group plc – 2024/25 Full Year Results
Slide 31: Disclaimer
Disclaimer This presentation contains certain statements, There are a number of factors, which may be statistics and projections that are or may be beyond the control of RS Group plc, which could forward looking. The accuracy and completeness of cause actual results and developments to differ all su
Slide 32: Appendix
Appendix 32 RS Group plc – 2024/25 Full Year Results
Slide 33: ESG is a key enabler of our strategy
ESG is a key enabler of our strategy… …aligned to our strategic action plan 33 RS Group plc – 2024/25 Full Year Results
Slide 34: Guidance points
Guidance points Foreign Other – Fewer trading days are expected USD EUR exchange 2025/26 to decrease revenue by sensitivity 2024/25 average exchange rates 1.276 1.189 considerations c. £9 million If 19th May exchange rates prevail to end of FY261 1.334 1.187 – Effective tax rate c. 26% – Applying an
Slide 35: Income statement
Income statement 2023/24 Like-for-like £m 2024/25 Restated Change change Revenue 2,904 2,942 (1)% (2)% Gross profit 1,243 1,258 (1)% (1)% Gross margin 42.8% 42.8% 0.0 pts (0.1) pts Operating profit 233 275 (15)% (12)% Adjusted operating profit 274 306 (10)% (8)% Adjusted operating profit margin 9.4%
Slide 36: Operating profit summary
Operating profit summary 2023/24 £m 2024/25 Restated EMEA 200.5 223.4 Americas 81.6 89.2 Asia Pacific 6.1 5.0 Region operating profit 288.2 317.6 Central costs (14.0) (11.4) Adjusted operating profit 274.2 306.2 Amortisation and impairment of acquired intangibles (37.3) (26.6) Acquisition-related it
Slide 37: Cash flow
Cash flow 2023/24 £m 2024/25 Restated Operating profit 233 275 Add back depreciation and amortisation 85 84 EBITDA 318 359 Add back impairments and loss on disposal of non-current assets 13 6 Movement in working capital 18 (64) Defined benefit retirement contributions in excess of charge (11) (10) M
Slide 38: Net debt position
Net debt position ▪ Acquisition of Trident increased net debt by £11 million ▪ Lease liabilities of £57 million (2023/24: £74 million) £m 2024/25 2023/24 Net debt at 1 April (418) (113) ▪ Headroom to Group’s banking covenants of net debt to adjusted EBITDA less than 3.25 times and EBITA to interest
Slide 39: Financial key performance indicators
Financial key performance indicators 2023/24 Like-for-like 2024/25 Restated Change change Like-for-like revenue change (2)% (8)% Adjusted operating profit conversion 22.1% 24.3% (2.2) pts (1.6) pts Adjusted operating profit margin 9.4% 10.4% (1.0) pts (0.7) pts Adjusted earnings per share 39.1p 42.9
Slide 40: Non-financial key performance indicators
Non-financial key performance indicators Customer People Health and safety 48.5 72 37% 0.44 Net Promoter Score Employee engagement Percentage of management All Accidents (Group, rolling 12 months) that are women (per 200,000 hours) Environment 2.2 6,500 1.55 84% Carbon intensity Carbon emissions Pac
Slide 41: Making great progress
Making great progress… …towards our 2030 ESG goals 1. Scope 1 and 2 emissions have been updated to reflect improvements to our reporting methodologies with more detail provided in our basis of reporting. Progress includes emissions from acquisitions within all reporting years from 2019/20 to 2024/25
Slide 42: Central cost allocation change
Central cost allocation change ▪ RS Group plc announced at the final results in May 2024 that the definition of central costs would be limited to costs solely related to support Group head office activities. Costs incurred to directly support the Group’s operating segments will be allocated accordin
Slide 43: Product category reclassification
Product category reclassification ▪ We have reclassified our product categories to better align with customer procurement needs and supplier classifications. ▪ Majority of our electronics products are aligned to specific industrial applications. ▪ Of our historic Electronics category (previously c.
Slide 44: Basis of preparation
Basis of preparation Unless otherwise stated ▪ Figures have been prepared using UK-adopted international accounting standards ▪ Adjusted excludes amortisation and impairment of intangible assets arising on acquisition of businesses, acquisition-related items, substantial reorganisation costs, substa