Victoria : 2024 Interim Results Presentation

About this update from Victoria Plc

Investor Presentation 26 November 2024 Results for H1 FY2025 Revenue & Earnings REVENUE 1 £568.8m (-7.5% LFL variance) 2 H1 FY24 £624.6m PRE-TAX PROFIT 1 £(13.6)m H1 FY24 £31.5m EBITDA 1 £50.2m (-45.0% LFL variance) 2 H1 FY24 £92.7m NET FREE CASH FLOW/SHARE 3 £0.28 H1 FY24 £0.48 EBITDA MARGIN 1 8.8% H1 FY24 14.8% LEVERAGE 4 6.2x H1 FY24 3.9x Note Revenue, EBITDA, EBIT and PBT shown before exceptional and non-underlying items (continuing operations) LFL variance calculated on a constant currency basis, without adjusting for acquisitions Cash flow per share based on underlying operating cash flow before interest, tax and exceptional items, and current number of shares outstanding (non-diluted) Applying our lending banks' measure of financial leverage (adjusted net debt / EBITDA), adjusting to take into account the full annual contribution from acquisitions and consistent translational FX 1 Table of contents 1 Executive Summary Financial Report Operational Overview 4 Outlook 5 Appendices: Shareholder Register 2 Executive Summary 3 Executive summary Soft demand due to near-term macroeconomic conditions, but fundamental sectoral drivers sustain long-term, steady growth in a global flooring market believed to be worth $200 billion and growth over the last 25 years of c.3% per annum. Victoria's focus is on efficiency gains and market share growth via: Complete integration of recent acquisitions, Forensic examination of every expense item for savings. Well positioned for the demand recovery with lower fixed costs, higher operational gearing, and increased market share. Net operating cash flow before interest, tax and exceptional items was £31.7 million. Importantly, after three consecutive years of cash being absorbed in working capital, there was a decrease of £2.1 million in H1 FY2025. This must - and will - continue to improve with specific plans being executed by all managers. Victoria continued to maintain a strong liquidity position and the Group finished the period with cash and undrawn credit lines in excess of £200 million. During the year the Company has completed the sale of a property in Belgium for €39.7 million and (post the H1 balance sheet date) realised €36.8 million from the sale of Graniser, which reduced leverage by 0.5x. For the five year period FY2015-2019, the Group averaged cash conversion of EBITDA to Net Free Cash Flow of 55%*, which the Board believes is a sustainable, long-term ratio and one management is focused on returning to in the near-term.. Cash generated after replacement capex, interest, and tax as a percentage of EBITDA 4 Financial Report 5 Financial Report Segmental performance H1 FY2025 H1 FY2024 Underlying P&L UK & Europe UK & Europe (Continuing UK & Europe Australia North Central costs TOTAL UK & Europe Australia North Central costs TOTAL Operations) - soft flooring - ceramic America - soft flooring - ceramic America tiles tiles £m Volumes (m sqm) 60.3 17.4 11.4 3.4 - 92.6 61.1 22.7 11.3 3.5 - 94.2 Revenue 284.8 151.4 54.7 77.9 - 568.8 318.6 166.5 54.0 85.5 - 624.6 % growth (10.6)% (9.1)% 1.3% (8.9)% n/a (8.9)% Gross profit 78.6 45.6 18.3 37.2 - 179.7 101.4 63.3 17.1 41.1 - 222.9 % margin 27.6% 30.1% 33.5% 47.8% - 31.6% 31.8% 38.0% 31.6% 48.1% - 35.7% Underlying EBITDA 1 25.5 19.5 7.2 2.4 (4.4) 50.2 43.2 36.1 6.9 9.6 (3.0) 92.7 % margin 9.0% 12.9% 13.2% 3.1% - 8.8% 13.6% 21.7% 12.8% 11.2% - 14.8% Underlying EBIT 1 2.7 5.8 4.5 (0.5) (4.8) 7.7 20.7 22.8 4.4 7.2 (3.3) 51.8 % margin 0.9% 3.8% 8.2% (0.6)% - 1.4% 6.5% 13.7% 8.1% 8.5% - 8.3% Note 1. Underlying figures are presented before exceptional and non-underlying items 6 Financial Report Non-underlying items H1 FY2025 H1 FY2024 Non-underlying items, £m Acquisition / disposal Other TOTAL TOTAL related Exceptional items Acquisition and disposal related costs (0.3) (0.3) (0.7) Reorganisation costs (cash) (1.1) (1.1) (7.2) Reorganisation costs (non-cash) 0.8 0.8 - Gain on disposal of fixed assets and investments 2.9 2.9 - Loss on disposal of subsidiaries (6.8) (6.8) - Intangible and tangible asset impairment (120.0) (120.0) - (4.2) (120.3) (124.5) (7.9) Other non-underlying operating items Acquisition-related performance plans 0.1 0.1 (5.3) Non-cash share incentive plan charge (1.8) (1.8) (1.2) Amortisation of acquired intangibles (18.4) (18.4) (19.4) Depreciation of fair value uplift to acquisition property (3.3) (3.3) (2.7) Hyperinflation accounting items (0.6) (0.6) 3.5 (21.6) (2.4) (24.0) (25.1) Finance costs Preferred equity - host instrument cost (10.4) (10.4) (14.0) Preferred equity - warrants 7.1 7.1 - Amortisation inception derivative 0.6 0.6 0.6 Unwinding of present value of deferred and contingent earn-out liabilities / fair value adjustment 0.7 0.7 (0.3) Mark to market adjustments on foreign exchange forward contracts (2.0) (2.0) 1.4 Translation difference on foreign currency loans (1.5) (1.5) (3.3) Hyperinflation - finance portion (0.2) (0.2) (1.6) - (5.7) (5.7) (17.2) Cash items 7 Financial Report Operational cash generation £m H1 FY2025 H1 FY2024 Full year FY2024 Revenue 570 626 1,234 % growth (9.0)% (13.9)% (11.9)% Underlying EBITDA 50.2 92.7 159.0 % margin 8.8% 14.8% 12.9% Payments under right-of-use lease obligations (18.9) (16.1) (34.8) Non-cash items (2.2) (1.1) (3.4) Underlying movement in working capital 2.1 (20.7) (10.9) Operating cash flow before interest, tax and exceptional 31.7 54.8 106.4 items % EBITDA conversion 1 92% 70% 85% Interest paid (17.1) (13.1) (29.7) Income taxes received / (paid) - 1.0 (2.3) Capital expenditure - replacement / maintenance net of (27.3) (13.6) (42.0) disposals Free cash flow before exceptional items (12.7) 29.1 35.9 % EBITDA conversion 1 (37)% 37% 28% Expansionary and synergy capex (5.8) (12.8) (19.2) Surplus real estate asset disposal proceeds - - 27.9 Proceeds on disposal of real estate via sale and leaseback 30.4 - - Deferred consideration and earn-out payments (2.9) (10.5) (14.9) Exceptional reorganisation cash items (3.5) (19.2) (31.1) Exceptional M&A cash items (0.3) (0.7) (1.0) Share buy back (1.1) - (3.2) Proceeds on disposal of business, net of cash 1.2 - - Dividends - - - Note 1. Conversion against continuing underlying EBITDA (pre-IFRS 16) 8 Financial Report Movement in net debt Bridge of opening to closing statutory net debt 657.8m 12.7m 1.1m 9.3m 3.2m 15.2m 8.1m 658.2m (17.6m) (31.6m) Opening Free cash Buy back of Expansionary Sale & leaseback Acquisition Discontinued Movement in Translation Closing net debt net debt flow before ordinary shares capex and and subsidiary and disposal operations factoring differences on exceptional cost for proceeds related foreign items synergy expenditure currency cash intiatives and loans Note 1. Net debt shown before right-of-use lease liabilities, bond premia and prepaid finance costs, consistent with the measure used by our lending banks 9

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