Slide 1: 2024 Full Year Results
2024 FULL YEAR RESULTS 5 MARCH 2025 Project: The Scoop Product: White Glazed Bricks
Slide 2: Disclaimer
DISCLAIMER The information contained in this presentation has not been independently verified and this presentation contains various forward-looking statements that reflect management’s current views with respect to future events and financial and operational performance. The words “growing”, “scope
Slide 3: Agenda
AGENDA OVERVIEW Joe Hudson FINANCIAL REVIEW Chris McLeish MARKET UPDATE & STRATEGIC PROGRESS Joe Hudson SUMMARY & OUTLOOK Joe Hudson Q&A 3
Slide 4: Overview
Project: Royal Eden Docks Phase 2 Product: White Engobe, Ivanhoe Creams, Moss Green Umbra Bricks OVERVIEW Resilient performance in 2024 against a challenging backdrop, with adjusted EBITDA in line with our expectations Revenue growth in H2, with demand supported by Group's leading service and supply
Slide 5: Financial Review
FINANCIAL REVIEW Project: Cala Homes, Shopwyke Lakes Product: Berkshire Orange Stock, Thakeham Red Multi Stock, Capital Browns Stock, Multi Orange Stock, Minster Cream Blend
Slide 6: Financial Summary
FINANCIAL SUMMARY Adjusted Revenue Adjusted EBITDA* EBITDA margin £366m £79m 21.7% FY 2023: £406m FY 2023: £107m FY 2023: 26.5% Return on Dividend Adjusted EPS EBITDA: Net debt Capital Employed per share 7.7p 1.8x 7.5% 4.0p FY 2023: 13.9p FY 2023: 1.1x FY 2023: 13.4% FY 2023: 7.0p 6
Slide 7: Revenue Bridge
REVENUE BRIDGE Lower revenues reflect reduced sales volumes in clay division Group revenues reduced by 10% (or 13% LFL, ex- FY 2023 292 114 406 Coltman) Clay revenues 15% lower reflecting weaker Clay 362 (43) demand in H1; segment includes £10m from -£40m (-10%) Ibstock Futures (2023: £12m) Concrete
Slide 8: Clay
Project: Regent Quay - Sittingbourne, Redrow Homes Product: Leicester Autumn multis CLAY Solid performance supported by strong cost management and robust commercial discipline 12 months ended 31st December (£m) 2024 2023 Total Revenue 249 292 Adjusted EBITDA 72 99 Margin 29.1% 33.8% Revenue reduced
Slide 9: Concrete
Project: Basement Project, Kent Product: Stepoc, Retaining Wall System CONCRETE Lower residential and rail volumes mitigated by more resilient landscaping volumes 12 months ended 31st December (£m) 2024 2023 Total Revenue 117 114 Adjusted EBITDA 15 19 Margin 12.5% 16.4% Revenue increased by £3m, up
Slide 10: Cash Flow Performance
CASH FLOW PERFORMANCE Significant improvement in cash conversion driven by disciplined management of working capital 12 months ended 31st December (£m) 2024 2023 Resilient cash flow performance driven by tight control of Adjusted EBITDA 79 107 capital expenditure, costs and working capital Δ in net
Slide 11: Robust Balance Sheet
ROBUST BALANCE SHEET Net debt increase from prior year reflected organic growth investments ahead of market recovery Closing net debt of £122m as at 31st Dec 2024 Reported leverage at 1.8x at 31st December 2024 as we continued to invest for future growth (1.5x on a banking covenant leverage basis2)
Slide 12: Technical Guidance FY25
Ibstock Apprentice, MAKE UK in Birmingham TECHNICAL GUIDANCE FY25 Income statement We expect an increase in market volumes in 2025, with momentum building through the year We will continue to invest selectively to bring capacity back where we anticipate demand improvement The Group has secured aroun
Slide 13: Market Update
MARKET UPDATE Project: Tower Hamlets Town Hall Product: Cooksbridge Yellow Clamp Stock bricks
Slide 14: Core Markets Update
Project: Redrow Homes Product: SL8 Roof Tiles Red CORE MARKETS UPDATE Supply side gathering momentum; more stimulus required for demand side Government Planning reform Affordability Positive Suppressed RMI targeting increased delivery set to unlock remains a key medium term with channels of new home
Slide 15: Promising Market Segments
PROMISING MARKET SEGMENTS Growth in diversified construction markets over the medium term Public infrastructure Build to rent Social and affordable housing Committed growth £5.1bn 1.3m households in public infrastructure total invested in sector in 2024 on social housing waiting lists (a record cale
Slide 16: UK Brick Market Overview
UK BRICK MARKET OVERVIEW Sequential growth during H2 24, with expectation of further progress in 2025 Brick deliveries The overall UK brick market was in line with 2023, and 3,000 200% 2,506 Brick deliveries (m bricks) 2,451 remains over 30% below 2022 demand levels 2,500 2,393 150% 457 1,875 457 57
Slide 17: Strategic Progress
STRATEGIC PROGRESS Ibstock Apprentices at MAKE UK in Birmingham
Slide 18: Atlas Pathfinder Factory
ATLAS PATHFINDER FACTORY Atlas pathfinder factory ramping up First customer deliveries despatched in late 2024 “ “ Ibstock is doing excellent work in partnership with the Future Homes Hub, to ensure their products and plans align to homebuilder needs and plans. Innovative new products have been well
Slide 19: Significant Investment in Slip Capacity at Nostell Nearing Completion
SIGNIFICANT INVESTMENT IN SLIP CAPACITY AT NOSTELL NEARING COMPLETION Phase one - complete Customer deliveries commenced in the second half of 2024 Production continued to progress well – with automation delivering a step change in pace and scale of brick slips for our façade and walling solutions P
Slide 20: Innovation Engine - Near Term
Project: Camden Street Product: Birtley Commercial Red INNOVATION ENGINE - NEAR TERM The pace of innovation is ramping up % of sales revenue from new and sustainable products 25% 20% 22% 15% 10% 11% 12% 13% 13% 11% 22% of revenue from new and 5% 6% sustainable products 0% 2018 2019 2020 2021 2022 20
Slide 21: Innovation Engine – Longer Term
INNOVATION ENGINE – LONGER TERM R&D driving significant growth opportunities CALCINED CLAY WASTE TO ENERGY HYDROGEN CIRCULARITY Positive partner conversations on Moving to commercial / investment Industry and Ibstock plans Multiple projects trialing recyclable the commercialisation of our owned disc
Slide 22: Capital Allocation
CAPITAL ALLOCATION SIGNIFICANT ORGANIC INVESTMENT FOCUS TO DATE GREATER OPTIONALITY LOOKING FORWARD £285m of organic capital invested over Expect free cash flow generation to create significant surplus capital the last 7 years – driving lower cost, over the next 5 years (after sustaining capex and d
Slide 23: Potential for Significant Earnings Growth Over the Upcoming Years
POTENTIAL FOR SIGNIFICANT EARNINGS GROWTH OVER THE UPCOMING YEARS Core business recovery and committed growth investments take us to our mid-term targets Core business recovery and committed growth investments 2024 EBITDA impacted by weaker market demand (>30% below 2022 ATLAS, ALDRIDGE MID-TERM AND
Slide 24: Strategic Differentiators
STRATEGIC DIFFERENTIATORS The creation of Ibstock's "North Star" priorities Safe and reliable operational excellence Obsessive customer experience Innovation Sector leading sustainability and social impact People and culture Group wide strategic actions expected to drive significant incremental valu
Slide 25: Summary & Outlook
SUMMARY & OUTLOOK Project: Elephant Tea Rooms, Sunderland, Tyne & Wear Product: Cheddar Red
Slide 26: Summary and Outlook
Project: Hudson Quarter York Product: Birtley Olde English Buff SUMMARY AND OUTLOOK Trading in the early weeks of 2025 year has been solid, with sales volumes, as anticipated, ahead of the comparative period We are encouraged by continued improvement in sector lead indicators, and expect an increase
Slide 27: Q&A
Q&A Project: Winkfield Park Product: Kingston Handmade Light Red Multi
Slide 28: Appendices
APPENDICES Project: Berners & Wells Product: Blue Glazed bricks
Slide 29: Ibstock at a Glance
IBSTOCK AT A GLANCE Ibstock Plc is a leading UK manufacturer of building products and solutions, backed up by design and technical services Key facts Eight core product categories and solutions 200 Over 200 years of experience 34 Operating manufacturing facilities across the UK c.2,000 95% Raw mater
Slide 30: Progress in 2024 Against Our ESG 2030 Ambitions
PROGRESS IN 2024 AGAINST OUR ESG 2030 AMBITIONS Carbon reduction (Scope 1 and 2) Product innovation Health and safety 49% 22% 13% 2023: 37% 2023: 11% 2023: 5% % absolute carbon reduction tonnes CO2 (relative to 2019 baseline) % sales turnover from new and more sustainable products and solutions Year
Slide 31: Medium Term Targets
MEDIUM TERM TARGETS Revenue growth target Target to grow revenues to >£600m in the medium term with an ambition to grow beyond >£600m this £513m £409m £406m £366m £316m Medium term profitability targets: 2020 2021 2022 2023 2024 Mid-term EBITDA Margins in core Clay business of >35% Overall Group mar
Slide 32: Major Organic Growth Projects
MAJOR ORGANIC GROWTH PROJECTS Group’s investment programme underpinning medium term ambition now well advanced Incremental Cumulative Spend to EBITDA £m spend to Total cost complete at full 31 Dec 2024 utilisation Core Clay Investment to increase capacity and provide UK’s first investments at carbon
Slide 33: Brick Market Dynamics
BRICK MARKET DYNAMICS Balancing supply and demand Brick Consumption (billions of bricks) Brick Production and Stock (billions of bricks) Domestic Despatches Imports Production Stock 2.1 2.0 2.0 1.9 1.9 1.9 0.5 1.8 1.8 0.4 0.5 0.6 0.3 1.6 1.6 1.6 0.3 0.2 1.5 0.3 1.4 1.4 0.1 0.3 1.3 1.3 0.1 0.1 0.1 0.
Slide 34: Group Revenue Analysis
GROUP REVENUE ANALYSIS Clay Concrete Total 12 months ended 31st December (£m) 2024 2023 2024 2023 2024 2023 Bricks & Masonry (1) 239 282 16 20 255 302 Flooring & Lintels (2) 0 0 46 36 46 36 Roofing 0 0 18 21 18 21 Fencing & Landscaping 0 0 24 20 24 20 Rail & Infrastructure (3) 0 0 13 16 13 16 Facade
Slide 35: Income Statement
INCOME STATEMENT 12 months ended 31st December (£m) 2024 2023 Revenue £366m £406m Adjusted EBITDA £79m £107m Normal depreciation (£29m) (£29m) Adjusted profit before interest and tax £50m £78m Cash interest (£9m) (£6m) Adjusted profit before tax £41m £72m Taxation - at effective rate (£11m) (£17m) A
Slide 36: Adjusted Income Statement Reconciliation
ADJUSTED INCOME STATEMENT RECONCILIATION Depreciation and Exceptional Non-cash 12 months ended 31st December 2024 (£m) Adjusted Statutory amortisation items Interest Revenue £366m - - - £366m Costs (£287m) (£40m) (£12m) - (£339m) EBITDA £79m (£40m) (£12m) - £27m Normal depreciation and amortisation
Slide 37: Exceptional Income Statement and Cash
EXCEPTIONAL INCOME STATEMENT AND CASH 12 months ended 31st December 2024 (£m) Enterprise restructuring GRC Total 2024 brought forward (£5.0m) £0.0m (£5.0m) Non-cash income statement charge £0.2m (£3.8m) (£3.6m) Cash income statement charge (£6.7m) (£1.4m) (£8.1m) Current year exceptional charge to i
Slide 38: Balance Sheet
BALANCE SHEET 12 months ended 31st December (£m) 2024 2023 Property, plant and equipment £463m £440m Right of Use assets £28m £40m Intangible fixed assets & Goodwill £74m £82m Non-current assets £565m £562m Inventories £125m £119m Trade and other receivables £44m £38m Current assets £169m £157m Tota
Slide 39: Cash Flow
CASH FLOW 12 months ended 31st December (£m) 2024 2023 Cash generated from operations £63m £64m Interest paid (£6m) (£4m) Other interest paid - lease liabilities (£2m) (£2m) Tax paid (£1m) £1m Net cash flow from operating activities £54m £58m Cash flows from investing activities Purchase of property
Slide 40: Cash Flows Since IPO
CASH FLOWS SINCE IPO 2016 2017 2018 2019 2020 2021 2022 2023 2024 Total Adjusted operating cash flow* £96m £97m £84m £72m £50m £76m £108m £50m £56m £690m Capital invested (£59m) (£38m) (£31m) (£39m) (£24m) (£25m) (£58m) (£66m) (£45m) (£385m) Adjusted free cash flow £38m £59m £53m £33m £26m £51m £50m
Slide 41: Adjusted EBIT LTM and ROCE
ROCE Clay Concrete Group £42.2m -38% £4.3m -46% £38.8m -41% Adjusted EBIT LTM 2024 £42.2m 2024 £4.3m 2024 £38.8m 2023 £68.1m 2023 £8.0m 2023 £65.8m 2022 £99.1m 2022 £12.9m 2022 £101.1m 9.5% -680pts 5.7% -410pts 7.5% -590pts ROCE (1) 2024 9.5% 2024 5.6% 2024 7.5% 2023 16.3% 2023 9.7% 2023 13.4% 2022