2025 full year presentation (grp 2025 full year presentation)

‌Agenda

01

02

03

04

05

CEO overview

2025 financial results Strategy update Outlook

Q&A

‌CEO overview

‌Building Tomorrow's World

Strategic continuity, sharper execution

Transform & Grow: the right strategy

Tighten focus

Intensify pace

Improve performance

A diversified portfolio of businesses

Where is Marshalls now? What does Marshalls need to do?

‌Building Tomorrow's World

Underpinning our continued commitment to medium-term targets

Focus

Pace

Performance

Prioritised investment

Flattened the structure

Visibility of commercial levers

Linked workforce plans to value

Agile decision making

Aligned incentives to outcomes

Refreshed product portfolio & NPD

Seamless customer integration

Expanded sales & product training

‌Building Tomorrow's World

Group returned to revenue growth reflecting progress of 'Transform & Grow' strategy

Improved profitability in Roofing Products, solid contribution from Building Products

Acceleration of Landscaping performance improvement plan

Robust balance sheet reflecting disciplined working capital management

- Group revenue increased 2%

- Landscaping contraction slowed to 1%

- Roofing Products performance was driven by growth in Viridian Solar

• Building Products performance underpinned by Water Management

  - Good progress on improvement plan

  • Annualised savings of around £11 million from 2026

    - Strong cash conversion of 88%

  • Pre IFRS-16 leverage at 1.8X

‌2025 financial results

‌Building Tomorrow's World

Revenue growth of 2% but weaker Landscaping Products performance impacted Group profitability

Revenue

Adjusted operating profit

Adjusted PBT

2%

15%

16%

Adjusted basic EPS

Proposed full year dividend

Pre-IFRS

16 net debt

16%

16%

£4.0

million

Note: Adjusted PBT is stated after adding back adjusting items totaling £26.0 million; see page 35 for details

‌Building Tomorrow's World

640

620

600

580

560

540

520

500

619.2

(2.5)

Revenue (£'m)

7.4

8.0 632.1

80

70 66.7

60

50

40

30

20

10

0

(10.1)

Operating profit (£'m)

0.8 0.1 56.4

(1.1)

2024 Landscaping Products

Building Products

Roofing Products

2025

2024 Landscaping

Products

Building

Products

Roofing

Products

Central

Costs

2025

Note: Operating profit stated after adding back adjusting items totaling £24.4 million; see page 35 for details.

‌Building Tomorrow's World

Landscaping Products

Improved revenue trend and decisive action taken to reduce cost base

• Revenue reduction of 1% to £265.8 million:

  • Volume growth of 4%; offset by

    2025 £'m 2024 £'m Change %

• • 1% investment in price and 4% from mix

    Revenue	265.8	268.3	1%
    Segment operating profit	0.6	10.7	94%
    Segment operating margin %	0.2%	4.0%	3.8 ppts

• Operating profit reduced by £10.1 million year-on-year:

  • Price investment and less profitable product mix

    offsetting volume benefit

  • People cost increases not recovered and Natural Stone processing losses

• Decisive action taken to reduce cost base and capacity:

  • £3 million of savings delivered in 2025 with a full annualised savings of around £11 million from 2026 onwards

    ‌Building Tomorrow's World

    Building Products

    Strong Water Management performance offset by softness in Bricks

• Revenue growth of 4% reflecting:

  • Good growth in Water Management and Mortars

    2025 £'m 2024 £'m Change %

partially; offset by

• • Lower revenue in Bricks with slowing in H2

• Operating profit was 8% lower year-on-year:

  • Improved profitability in Water Management with higher volumes and improved mix; offset by

  • Lower profit in Bricks due to lower volumes and reduced operational efficiency, and reduced levels of property-related income

    ‌Building Tomorrow's World

    Roofing Products

    Improved profitability driven by strong performance from Viridian Solar

• Revenue growth of 4% in 2025:

  2025 £'m 2024 £'m Change %

• • Continued strong revenue growth of 32% from Viridian Solar driven by continued benefit of energy efficiency changes in new build

    Revenue	194.3	186.3	4%
    Segment operating profit	50.2	49.4	2%
    Segment operating margin %	25.8%	26.5%	0.7 ppts

  • Marley Roofing revenue declined due to weaker end markets and increased competitive intensity

• Operating profit increase of 2% resulting from:

  • Increased profit in Viridian Solar from volume growth and disciplined pricing

  • Profit lower in Marley due to lower volumes and weaker manufacturing efficiency. Targeted capex to improve efficiency and resilience in 2026

    ‌Building Tomorrow's World

    Adjusted profit before taxation and earnings per share

    Earnings per share reduced due to weaker Landscaping Products performance

    2025 £'m 2024 £'m Change %

• Operating profit contracted by 15% to £56.4 million

• Lower finance costs reflect the impact of lower base rates

• Profit before tax contracted by 16% to £43.7 million, with the reduction in operating profit partially offset by lower finance costs

• Effective tax rate of 22%, reflects headline UK corporation tax rate and benefit from a patent box arrangement

• Adjusted EPS contracted by 16% to 13.4 pence

  Note: PBT stated after adding back adjusting items totaling £26.0 million; see page 35 for details.

  ‌Building Tomorrow's World

  Net debt

  Continued focus on financial discipline delivers strong cash conversion: pre-IFRS16 net debt slightly higher

• Strong operating cash conversion of 88%, reflecting disciplined working capital management

  Pre-IFRS 16 net debt bridge (£'m)

• Finance and tax payments totaled £25.1 million, an increase on 2024 due to arrangement fees associated with refinancing and timing of bank interest payments

• Capital expenditure remains targeted, with a net cash outflow of £15.7 million

• Adjusting items paid include final £6.6 million contingent consideration payment for Viridian Solar and restructuring costs

• Closing pre-IFRS16 net debt of £137.9 million represents a

  £4.0 million increase year-on-year

  (133.9)

  
  
  

  85.0

  (12.5)

  (25.1)

  
  
  

  (19.2)

  
  
  

  (15.7)

  
  
  
  
  

  (10.9) (5.6) (137.9)

  
  
  

  ‌Building Tomorrow's World

  Ongoing capital discipline

  Good control of working capital; medium-term target to rebuild ROCE to c.15%; significant liquidity

  2025 £'m 2024 £'m Change %

• Continued strong management of working capital: debtor and creditor days improved year-on-year and inventory turn was unchanged

• Adjusted ROCE of 7.0% reflects the weaker trading performance; the medium-term target to rebuild ROCE to c.15% remains a key strategic priority

• Robust balance sheet maintained with leverage higher at

  1.8x due primarily to lower EBITDA generation

• Significant liquidity available from £125 million in undrawn bank facilities at year end

  • Provides sufficient capital together with organic cash generation to execute our strategic plans

Clear unchanged policy focused on optimising shareholder value

1

2

Investment to enhance competitive advantage

3

4

5

Organic

growth

Dividends

Balance sheet

deleveraging

Selective

acquisitions

Strategic plan requires investment

£20-£30 million pa in

medium term

Capital expenditure in 2026 at the lower end of this range

Transform & Grow

Maintain dividend cover of two times adjusted earnings

Full year dividend of

6.7 pence per share is in-line

with policy

Balance sheet deleveraging expected in 2026

Leverage range target of

0.5 to 1.5X EBITDA

optimal to provide flexibility

Selective bolt-on M&A to support growth strategy

‌Strategy update

SECTION

‌Our purpose:

Best in class technical and design support

Our strategy:

Carbon leadership

Customers

who value our unique set of capabilities

Leading brands

2x

Business excellence Leadership in ESG Great place to work

2-4%

market

15%

operating

90%

cash conversion

0.5 -1.5x

pre-IFRS16 net debt to

dividend cover

outperformance

margin

£20-30m

EBITDA leverage target range

% return on capital

capital expenditure pa

15 employed

‌Building Tomorrow's World

- Drive greater value from national model

- Embed commercial excellence

- Simplify the portfolio

- Growing strategic customer relationships

- Strengthen leadership

- Sector capacity broadly stable; some

competitors reducing output

- RMI impacted by weaker consumer

confidence

- H2 softened as new build slowed

- Activity levels broadly flat

Landscaping

Drive greater value from distinctive national specification pull model

Marshalls Full Year 2025 Results

‌Building Tomorrow's World

Rebuilding margin in Landscaping Products

Target Margin 12%+

Operating leverage

• Incremental volume through existing network

• Normalisation of competitive dynamics

Commercial excellence

Commercial excellence

• Clearer product & pricing architecture

• Increased specification selling

Cost base reset

Cost base reset

• £11 million of cost reduction

• Simplified network footprint

Foundation in place

Foundation in place

• 'High performing team' now in place

  From reset to recovery: disciplined delivery of a margin of at least 12%

  
  
  

• Customer relationships reinvigorated

‌Building Tomorrow's World

- Improve availability in supply constrained

categories

- Leverage unique full roof offer to drive

share in private new build market

- Drive market share private RMI sector

- Optimise profit in social RMI heartland

- Increased competitive intensity in concrete

roof tiles in 2025, expected to persist during 2026

- Underlying demand broadly flat

Marley Roofing

Strengthen roofing heartlands and drive share in adjacencies

‌Building Tomorrow's World

- Accelerate growth of ArcBox in European

markets

- Increase attachment rate of ancillary

products

- Leverage regulatory tailwinds

- Future Homes Standard remains long term

growth driver

- Increased demand for ArcBox

- No significant change in competitor

dynamics

- Significant market growth in 2025

Viridian Solar

Leverage regulatory tailwinds and NPD to accelerate growth

‌Building Tomorrow's World

- Invest in manufacturing capability

and capacity

- Access new markets and grow share

in water infrastructure

- Strengthen position in new housing

- No significant change in competitor

dynamics

- Early AMP8 indicators are positive

- Industry demand levels broadly flat in 2025

Water Management

Reposition to access growth and market headroom in water infrastructure

‌Building Tomorrow's World

- Manufacturing investment to grow

capacity

- NPD to expand offering

- Accelerate concrete brick adoption

- Drive share with national housebuilders

- Lack of recovery to date has resulted in

over supply of bricks

- Competitive dynamics intensified with

market capacity recommissioned in anticipation of recovery

- Industry demand levels broadly flat

Bricks and Masonry

Accelerate concrete adoption as lower carbon alternative

‌Outlook

SECTION

‌Building Tomorrow's World

Expectations unchanged: sharper execution and attractive fundamentals support outlook

Market activity levels in the first two months of 2026 remained consistent with the close of 2025, although they were affected by persistent rainfall and the Board is mindful of the potential impacts of the conflict in the Middle East.

Sharper execution of Transform & Grow, tightening our focus, intensifying our pace, and improving performance, ensuring teams throughout our businesses are aligned behind priorities that will improve margin, cash and service outcomes, which supports our unchanged expectations for the year.

Fundamentals of the business remain attractive. Underpinned by our diversified portfolio, leading brands and best-in-class capabilities, we remain committed to delivering our medium-term targets.

‌Building Tomorrow's World

‌Building Tomorrow's World

Roofing

Solar

Bricks

‌Building Tomorrow's World

Portfolio role

Business units Strategic imperative

‌Building Tomorrow's World

Sustained reduction in net debt since 2022 with significant liquidity and covenant headroom

• Syndicated bank facility of £270 million -

  matures in November 2029, with a 1-year extension option

• Net debt of £177.0 million and £137.9 million

  on a pre-IFRS16 basis

• Comfortable headroom against covenants (using pre-IFRS 16 measures)

  • EBITA : Interest Charge | 5.7X

    (covenant = more than 3X)

  • Net debt : Adjusted EBITDA | 1.8X

    (covenant = less than 3X)

• Bank facility headroom of £125 million at December 2025

Pre-IFRS 16 net debt (£'m)

2022 2023 2024 2025

‌Building Tomorrow's World

‌Building Tomorrow's World

Bridge of reported result to adjusted result

‌Building Tomorrow's World

Notes:

1. Amortisation of intangible assets arising on acquisitions is principally in respect of brands and customer relationships.

2. Impairment charges, restructuring charges and similar costs arose during major restructuring exercises conducted when the Group took steps to reduce its cost base as part of the Landscaping Performance Improvement Plan.

3. Transformation costs represent costs incurred in 2024 in respect of the 'Transform & Grow' strategy.

4. The additional contingent consideration arising in 2024 relates to the reassessment of the amounts that became payable to vendors arising in relation to Viridian Solar.

5. The profit generated on the sale of a significant property in 2024 was in respect of the Group's former manufacturing site in Carluke.

6. Following the refinancing of the Group's debt facilities during the year, the unamortised balance of arrangement fees was written off to the income statement as a non-cash charge. These fees had been recognised as part of the carrying amount of the related borrowing and amortised over the term of the facilities using the effective interest rate; on derecognition/repayment of the original facilities, the remaining unamortised balance was expensed.

‌Building Tomorrow's World

• 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 is personal to the recipient and has been issued by Marshalls plc ("Marshalls"), comprises slides for a presentation in relation to Marshalls' preliminary results, and is solely for use at such presentation.

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• This presentation and associated discussion includes forward-looking statements. Information contained in this presentation relating to Marshalls has been compiled from public sources. All statements other than statements of historical fact included in this announcement, including without limitation those regarding the plans, objectives and expected performance of Marshalls, are forward-looking statements. Marshalls has based these forward-looking statements on its current expectations and projections about future events, including numerous assumptions regarding its present and future business strategies, operations, and the environment in which it will operate in the future.

• Forward-looking statements generally can be identified by the use of forward-looking terminology such as "ambition", "may", "will", "could", "would", "expect", "intend", "estimate", "anticipate", "believe", "illustrative", "illustration", "plan", "seek" or "continue", or negative forms or variations of similar terminology. Such forward-looking statements involve known and unknown risks, uncertainties, assumptions and other factors related to Marshalls.

• By their nature, forward-looking statements involve risks, uncertainties and assumptions and many relate to factors which are beyond the control of Marshalls, such as future market and economic conditions, external factors affecting operations and the behaviour of other market participants. Actual results may differ materially from those expressed in forward-looking statements. Given these risks, uncertainties and assumptions, you are cautioned not to put undue reliance on any forward-looking statements. In addition, the inclusion of such forward-looking statements should under no circumstances be regarded as a representation by Marshalls that Marshalls will achieve any results set out in such statements or that the underlying assumptions used will in fact be the case.

• Other than as required by applicable law or the applicable rules of any exchange on which securities of Marshalls may be listed, Marshalls has no intention or obligation to update or revise any forward-looking statements included in this presentation.

• This presentation is for information only and does not constitute or form part of any offer or invitation to sell, or any solicitation of any offer to purchase, any shares in Marshalls or any other securities, nor shall it or any part of it nor the fact of its distribution form the basis of, or be relied upon in connection with, any contract or investment decision related thereto. No investment advice is being given in this presentation.