Slide 1: 2024 Full Year Results
2024 Final Results 2024 Full Year Results March 2025 midwichgroupplc.com
Slide 2: Financial and strategic highlights
2024 Final Results 01/ Financial and strategic highlights Stephen Fenby, Group Managing Director 2
Slide 3: 2024: Robust performance in a challenging market
2024 Final Results 3 2024: Robust performance in a challenging market • Midwich delivered record revenue and gross margins, despite continued challenging macro conditions. • Strong performance in strategic product categories, reflecting the Group’s strategy to focus on higher margin product areas. •
Slide 4: Robust performance with record gross margins
2024 Final Results 4 Robust performance with record gross margins 2024 revenue and gross margin 2024 operating profit and cash generation Global revenue £1.317bn Adj. operating profit £48.3m Total growth (cc) +3.5% Adj. operating profit (cc) -17.4% Organic growth -1.4% Adj. operating margin 3.7% (do
Slide 5: Current landscape
2024 Final Results 5 Current landscape General Market Conditions • Ongoing challenging economic conditions continue to impact our markets, with no current signs of general improvements; • UK&I markets were very challenging in 2024, but have seen small improvements in early 2025. Demand in mainland E
Slide 6: Our purpose and key differentiators
2024 Final Results 6 Our purpose and key differentiators Why Midwich? We exist to help our customers win and then deliver successful projects, and our manufacturers to reach a broad market Deep vendor relationships Broad, long, close, symbiotic, unique We are exclusive or #1 distributor in most rela
Slide 7: Market data
2024 Final Results 7 Market data The technology distribution market (IT and AV products) as a whole Large format display sales (23% of revenue in 2024) was relatively flat in 2024 and is expected to show some growth overall experienced significant price erosion in Europe in 2024. This expected to re
Slide 8: Financial review
02/ Financial review Stephen Lamb, Group Finance Director 8
Slide 9: Income statement
2024 Final Results • Record revenue of £1,317m, up by 3.5% at CFX. Organic sales down by 1.4% in a Income statement challenging market. • Highest ever gross margin at 17.8%; ahead of prior year by 30bps reflecting technical mix benefit. Constant Actual • Temporary reduction in adj. operating profit
Slide 10: Balance sheet and net debt
2024 Final Results • Non-current assets increased due to the four small acquisitions completed in 2025. Balance sheet and net debt • Strong working capital management, with working capital as a percentage of last twelve months’ revenue slightly below prior year. Balance Sheet (31 December) • Increas
Slide 11: UK & Ireland (36% Group revenue)
2024 Final Results UK & Ireland (36% GROUP REVENUE) • The UK&I market demand continued to be subdued in the period with revenue flat on prior year. Organic 14 Offices sales declined by 3.1%. • The Group has its highest market share in this region and the challenging backdrop resulted in a degree of
Slide 12: EMEA (43% Group revenue)
2024 Final Results EMEA (43% GROUP REVENUE) • The EMEA region comprises our businesses in France, Germany, Switzerland, Benelux, Norway, Italy, 19 Offices Iberia, and the Middle East. Revenue, on a constant currency basis, was broadly in line with 2023. Organic sales declined by 2.7% reflecting a re
Slide 13: North America (17% Group revenue)
2024 Final Results North America (17% GROUP REVENUE) • Revenue in North America increased by 28.1% reflecting both a full contribution from SFM in Canada (Acquired in June 2023), and further market share gains in the United States. • Organic revenue growth of 7.0% was driven by demand for unified co
Slide 14: APAC (4% Group revenue)
2024 Final Results APAC (4% GROUP REVENUE) • Revenue in Asia Pacific was down 1.3% on the prior year. • The ANZ market has also been impacted by excess mainstream product 6 Offices supply and discounting, which resulted in slightly lower gross margins of 16.4% (2023: 17.4%) and an increased adjusted
Slide 15: M&A overview and our investment case
2024 Final Results 03/ M&A overview and our investment case Stephen Fenby, Group Managing Director 15
Slide 16: M&A strategy and results
2024 Final Results Key M&A criteria: 16 • Strong reputation M&A strategy and results • • Technical skills Vendor and customer portfolio M&A has been part of our strategy since 2006. We acquire businesses in order to either access new geographical markets, • Culture and ethos or to add new technical
Slide 17: Our investment proposition
2024 Final Results 17 Our investment proposition Midwich has a market leading position A proven track record and strong financial • We are the leading global Pro AV value-added position distributor • Long track record of consistent and resilient • In a $325bn global market that’s expected to grow by
Slide 18: Key drivers for long-term growth
2024 Final Results 18 Key Drivers for long-term growth Organic revenue Enhanced by M&A Gross margin Manage our cost progression base • Structural market • Fragmented market, growth (AVIXA c5-6% with many • Continue to grow • Operational leverage per annum) opportunities technical mix from scale • Tr
Slide 19: Summary and Outlook
2024 Final Results 19 Summary and Outlook Summary • Challenging conditions in 2024 have continued into the early part of 2025; • The Group continues to perform well against competition and has maintained or gained market share in key markets; • Long term strategy to increase focus on specialist prod
Slide 20: Appendices
2024 Final Results 04/ Appendices 20
Slide 21: Group at a glance
2024 Final Results 21 43 27 Showroom/demo Offices & Showrooms £1.3B Turnover 2024 facilities 1,800+ Staff members Group at 24,000+ a glance Accounts served in 2024 Our expertise and specialist focus connect technology and people around the globe. What makes us different is our knowledgeable teams an
Slide 22: Delivering against our long-term strategy
2024 Final Results 22 Delivering against our long-term strategy Specialisation Geographical Coverage Scale Relevance Support Efficiency Profitability Global projects Profitability Defensibility Share of wallet Cross selling Our strategy delivers: Long term, strong, predictable and defensible EPS gro
Slide 23: Technology coverage and who we serve
) MidwichGroup 2024FinalResults 23 TECHNOLOGY COVERAGE. | 000 LT fl; si Signal Professional LED Projection Security Lighting Broadcast Management Offering a The rise of digital Distribution of Providing From IPTV on of capability and spectacula digital si projectors and ark image quality, profession
Slide 24: Mergers and acquisitions
(\) MidwichGroup Mergers and acqu We believe we have a winning formula when it comes to M&A, with our proven track record of iccessful acquisitions, careful {tegration and a strong pipeline ‘opportunities. We focus on igh-quality, ambitious, specialist businesses, autonomy oun them all the ben Inclu
Slide 25: What makes AV special?
2024 Final Results What makes AV special? AV turns the AV can make almost every business perform better. digital into reality Our technology helps drive improved performance, for example in… Corporate Retail Transport More effective meetings, Education Making roads and Higher quality and more More e
Slide 26: The Pro AV value chain
2024 Half Year Results 26 The Pro AV value chain MANUFACTURER. A MIDWICH GROUP BUSINESS PROFESSIONAL MARKET END USERS From global leaders to innovative start-ups, Our business provides the services that the Our customers are professional End users are typically businesses covering our manufacturer p
Slide 27: Demand drivers in the AV Industry
2024 Final Results 27 Demand drivers in the AV Industry Driver Reason Examples • Touch screen in shopping centre reduces need for help desk staff Reduces people costs • Touch screen ordering in fast food outlet reduces serving staff Cost Saving Reduces waste • Elimination of posters reduces paper wa
Slide 28: Why Midwich Group?
2024 Final Results 28 Why Midwich Group? WHY OUR CUSTOMERS CHOOSE US WHY OUR VENDORS CHOOSE US Nurturing Training and Vertical Credit/business Working Market focus Efficient Scale and Marketing and long-term events market focus services together logistics flexibility sales support relationships 100%
Slide 29: End user market mix
2024 Final Results • Our expanded UC portfolio and continued roll out across the Group has increased importance of End user market mix corporate market, although this market remains relatively soft. • Education spend dropped significantly – more in schools than higher education. UK&I and Germany par
Slide 30: Strong customer and vendor relationships
2024 Final Results 30 Strong customer and vendor relationships • Largest supplier accounts for 9.3% of sales; • Reduced vendor concentration dilutes risk; Vendors • Top 10 vendors account for 46% sales and top 40 account for • Significant gains from winning and growing new 78%; vendors; • We are eit
Slide 31: Specialisation across the Group
2024 Final Results Mainstream LED Audio UC Broadcast Lighting Security Dry Hire Technical Video Specialisation UK & I Netherlands across the Northern Belgium Europe Norway Group DACH/ Eastern Europe Germany Switzerland Austria As you can see, the Group operates in major France geographic markets wit
Slide 32: Consistent market outperformance
2024 Final Results 32 Consistent market outperformance Gross margin %^ Revenue £m ^ Restated to recognize carriage income as revenue. This increased the gross margin in 2024 from 17.1% to 17.8% and in 2023 from 16.8% to 17.5%. Other years as reported. 32
Slide 33: Evolution of product and geographic mix
2024 Final Results 33 Evolution of product and geographic mix Specialisation 2016 5% 2024 • Reduced vendor concentration dilutes risk; of the Increased specialisation 14% • 23% business Significant gains from over winning andtime growing new 43% vendors; Technical product categories 21% • Leading 8%
Slide 34: Strong track record
2024 Final Results 34 Strong track record Strong revenue growth Increased technical product mix Revenue (£m) by product type 5-year CAGR: CAGR 31% Total +14% Organic +5% CAGR 1% Gross margin development EPS (p) development Operating cash generation 5-year operating cash conversion 92% of adj. EBITDA
Slide 35: Proven acquisition capability
30 2024 Final Results 35 PERFORMANCE 30 acquisitions Proven acquisition capability since IPO As you can see, the Group operates in major geographic markets with local specialists covering a multitude of technology categories. 2016 2017 2018 2019 2020 2021 2022 2023 2024 Holdan Earpro New Media Mobil
Slide 36: Future development and performance drivers
2024 Final Results 36 Future development and performance drivers Strategic focus areas: Performance Predictability Continue to expand technical product drivers: • Business diversity balances risk • Strength in depth of skills capabilities; • Portfolio management skills (incl onboarding) • Long-term
Slide 37: Strengths and defensibility
2024 Final Results 37 Strengths and defensibility ✓ Focus on the AV market; ✓ Key long-term, value-add relationships with major vendors and customers; ✓ High value-add distribution with specialisms and bespoke service offering, acting as a key differentiator; ✓ Leading competitive position and estab
Slide 38: Capital allocation
2024 Final Results • Adjusted return on capital^ 2024: 12.4% Capital allocation • Despite significant M&A investment towards the end of the year Disciplined capital allocation, with a focus on long-term returns ^Adjusted return on capital employed is a Midwich Group alternative performance measureme
Slide 39: Group trading summary 2024
2024 Final Results 39 Group trading summary 2024 12 months to 12 months to Constant 31 December 31 December Growth % currency 2024 2023 growth % £m £m Revenue^ 1,317.0 1,295.1 1.7% 3.5% (-1.4% organic) Gross Profit^ 234.3 226.1 3.6% 5.5% Gross profit margin^ 17.8% 17.5% Adjusted operating profit1 48
Slide 40: Regional summary
2024 Final Results 40 Regional summary Region Revenue Revenue^ CFX % Org % GP %^ GP %^ GP % 2024 £m 2023 £m 2024 2023 Change UK&I 476.4 478.3 (0.3%) (3.1%) 18.0% 18.7% -0.7ppts EMEA 569.9 588.1 (0.6%) (2.7%) 16.8% 16.1% +0.7ppts APAC 45.9 48.0 (1.3%) (1.3%) 16.4% 17.4% -1.0ppts North America 224.8 1
Slide 41: Movement in net debt
2024 Final Results 41 Movement in net debt £59.2m £57.6m (£14.5m) (£1.6m) 97% (£3.0m) (£9.9m) (£5.4m) (£17.1m) (£10.8m) (£47.2m) (£38.2m)
Slide 42: Modelling considerations
2024 Final Results 42 Modelling considerations Acquisitions Payments related to past M&A expected to be £15.5m in 2025 (c£13m in H1 2025 / £2.5m in H2) and c£2m in 2027. ERP amortisation ERP programme initial "go live" in 2024. Amortisation of core platform will be phased in as users go live. c£0.5m
Slide 43: Exceptional items in 2024
2024 Final Results 43 Exceptional items in 2024 £m Restructuring costs 3.0 One-off costs associated with the 2024 restructuring activity. ERP prototype disposl 4.7 Following the go-live of the ERP in 2024 this is the non-cash impact of decommissioning of the ERP pilot prototype as it was no longer c
Slide 44: Reconciliation to statutory profits
2024 Final Results 44 Reconciliation to statutory profits £m 2024 2023 Statutory operating profit 24.1 41.6 Acquisition related expenses 1.1 1.5 Exceptional costs (Restructuring costs £3.0m, ERP prototype disposal £4.7m and UAE fire impact £4.3m) 12.0 - Share based payments and employer taxes (1.3)
Slide 45: Sustainability strategy
2024 Final Results 09 Commitments Commitments • Shifting a material percentage of our • An end date for the use of gas and oil in all of purchased electricity to our facilities by 2029 Sustainability renewable energy • Adoption of third-party • Developing green transport accreditation in key markets
Slide 46: Group Management Team
2024 Final Results 46 Group Management Team Stephen Fenby Stephen Lamb Tom Sumner Mark Lowe Managing Director Finance Director Chief Strategy Officer Chief Commercial Officer Mathieu Payet Stuart Mizon Joe Thompson Phil Bligh Alex Kemanes Managing Director Group Commercial Director Corporate Strateg
Slide 47: Midwich Group contact details
2024 Final Results Midwich Group +44 (0)20 5555 9999 Vinces Road info@midwichgroup.com Diss, Norfolk IP22 4YT midwichgroupplc.com