[PPT] - Capital Markets Day 3 December 2013 Capital Markets Day 3 December PowerPoint Presentation

SLIDE 1

Capital Markets Day – 3 December 2013 1

Capital Markets Day

3 December 2013

SLIDE 2

Capital Markets Day – 3 December 2013 2

Welcome

Leveraging our position as the largest supplier of building materials in the UK

SLIDE 3

Capital Markets Day – 3 December 2013 3

Agenda

Travis Perkins today John Carter, Chief Executive Market & customer dynamics John Carter Group value creation Tony Buffin, Finance Director Division plans John Carter | Tony Buffin

Afternoon tea

Capital management Tony Buffin Questions John Carter | Tony Buffin | Division CEOs

SLIDE 4

Capital Markets Day – 3 December 2013 4

Long term, sustainable growth

Accelerate innovation of customer propositions
Expand network and intensify use of space
Exploit scale advantage
Prioritise investments throughout the portfolio

SLIDE 5

Capital Markets Day – 3 December 2013 5

Levers of value creation

Customer innovation Optimising network Scale advantage Portfolio management

Improved value
Extended range
Product

development

Format renewal
Technology enabled
Multi-channel
TP expansion &

modernisation

Wickes national

footprint

Plumbing & Heating

format clarity

Implants intensify

returns

Trade parks
Supply chain

investment

Leverage property

capability

Group sourcing

benefits

Shared technology

investment

Streamlined

central functions

Devolved

management responsibility

Disciplined

planning & capital allocation

Regular market

updates

Enabled through people & evolution of unique culture

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Capital Markets Day – 3 December 2013 6

Travis Perkins today

John Carter, Chief Executive

SLIDE 7

Capital Markets Day – 3 December 2013 7

Merchants

Wickes Tile Giant Toolstation CPS, PTS, F&P, Spares BSS, CCF, Keyline

Customers Pricing Ranging Delivery

Small / Retail Medium-Large Trade Fixed Tendered quote / framework agreements Variable by customer to templates / guided

Travis Perkins & Benchmarx

Mandated Variable 35% 50% 85%

Strong portfolio of businesses

Consumer Contracts

Sales* = £1.2bn Sales* = £1.5bn Sales* = £1.3bn Sales* = £0.9bn

*Year ended 31 December 2012

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Capital Markets Day – 3 December 2013 8

Differentiated

tradesman & serious DIY proposition

Strong brand

awareness

Nationwide delivery

capability

UK wide kitchen &

bathroom installer network

Growing multi-channel

presence

Market leader with

~15% share

Leading product

range breadth

Strong local customer

relationships

National branch

network

Efficient lightside

distribution capability

Scale buying &

sourcing advantages

Nationwide branch

network

Diverse customer

base

Deep knowledge of

upstream supply & downstream usage

Improving direct

sourcing capability &

wn label

development

Strong showroom

format

Deep specialist sector

knowledge

Technical expertise
Strong customer

relationships

Range breadth
Access to group

range

Strong portfolio of businesses

Wickes

Tile Giant

Toolstation

Consumer

BSS, CCF, Keyline

Contracts Merchants

CPS, PTS, F&P, Spares Travis Perkins & Benchmarx

SLIDE 9

Capital Markets Day – 3 December 2013 9

(250)

250

500 750 1,000 1,250 1,500 1,750 2,000 2,250 1989 1991 1993 1995 1997 1999 2001 2003 2005 2007 2009 2011 Base Organic growth Acquisitions Closures & disposals

Track record of network growth

# branches

SLIDE 10

Capital Markets Day – 3 December 2013 10

Long-term TSR outperformance

Total Shareholder Return Index

– 50 100 150 200 250 300 350 400 450 500 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

Travis Perkins: +327.1% FTSE 100: +68.7% Peer composite index (market cap weights): +136.1%

Source: Datastream, November 2013 | Peer composite comprises Grafton, Home Retail, Howdens, Kingfisher, SIG & Wolseley

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Capital Markets Day – 3 December 2013 11

Experienced executive team

Group Executive Division Executive

Biographies available in Appendix (i)

Martin Meech Group Property Director Robin Proctor Supply Chain Director Ian Preedy Group Commercial Director John Carter Chief Executive Tony Buffin Finance Director Carol Kavanagh Group HR Director Norman Bell Group Strategy & IT Director Paul Tallentire CEO Plumbing & Heating Arthur Davidson CEO General Merchanting Frank Elkins CEO Contracts Simon King MD Wickes Deborah Grimason General Counsel

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Capital Markets Day – 3 December 2013 12

Travis Perkins Group today

Strong portfolio of businesses
National reach, product breadth, customer offer, leading positions
Good track record of organic & acquisitive growth
Consistent TSR outperformance
Experienced board & executive team
Strong platform for sustainable growth

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Capital Markets Day – 3 December 2013 13

Market & customer dynamics

John Carter

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Capital Markets Day – 3 December 2013 14

Well positioned to exploit opportunities

Market growth indicators are encouraging
Market developments create compelling opportunities
Significant opportunities for structural growth
Evolving portfolio model to exploit opportunities

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Capital Markets Day – 3 December 2013 15

September 2013 YoY indicators positive

+49k Site visitors +61k Site reservations +32% Mortgage approvals +23% Housing transactions +6% Housing prices +19pt Consumer confidence +22pt Climate for purchases (0.5)% Equity withdrawal +1% Retail Sales growth (0.5)% Construction output +200% Expected workload +69pt Trade confidence +22% New construction

rders

+26% Architect work load

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Capital Markets Day – 3 December 2013 16

Mortgage approvals slow to recover…

50 100 150 200 250 300 350 2006 2007 2008 2009 2010 2011 2012 2013

Thousands

Other Remortgages House purchases

Source: Bank of England, October 2013

65% below peak

…but picking up

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Capital Markets Day – 3 December 2013 17

Recovery in housing transactions underway

Source: HM Revenue & Customs, October 2013 & TPK analysis

400,000 600,000 800,000 1,000,000 1,200,000 1,400,000 1,600,000 1,800,000 2006 2007 2008 2009 2010 2011 2012 2013

Northern Ireland Wales Scotland England

40% below peak 30% recovery

Rolling 12 month property transactions

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Capital Markets Day – 3 December 2013 18

20%
15%
10%
5%

0% 5% 10% 15% 20% 25% 30% £60 £80 £100 £120 £140 £160 £180 £200 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

Avg. house Prices (£'000's)

House Price (LHS) 12 Month Inflation (RHS)

…providing stimulus to house prices

Source: Halifax / Nationwide (average House Prices and 12m House Price Inflation), October 2013

Index

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Capital Markets Day – 3 December 2013 19

… and consumer confidence returning

(45) (40) (35) (30) (25) (20) (15) (10) (5) 5 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

Index figure Index annual moving average

Source: GFK UK Consumer Confidence Index, October 2013

Index

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Capital Markets Day – 3 December 2013 20

Significant scope to expand share

£64bn building materials market

Source: i) Merchanting – TPK market analysis using BMF ii) DIY & Gardening – Verdict iii) Adjacent markets – combination of public research (e.g. AMA research) and TPK analysis.

Our addressable market is worth

~£33bn of wider £64bn building materials market

Adjacent category opportunities
Resilient RMI market
Greater reliance on RMI spend

Addressable market £33bn

Addressable trade market £26bn Direct / contract to trade £20bn Non-Addressable retail market £5bn Addressable retail market £7bn Non-Addressable trade market £6bn

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Capital Markets Day – 3 December 2013 21

Improving signs in „end-user‟ markets

New - Public Sector 6% New - Infrastructure 3% New - Industrial 1% New - Commercial 6% New - Private Sector 16% RMI - Merchanting - Public Sector 11% RMI - Merchanting - Private Sector 33% RMI - Retail 24%

Key - growth rate Greater than 2% Betw een 0.1% and 2% Flat Betw een -0.1% and -2% Greater than -2%

Source: TPK internal analysis

2014

New - Public Sector 6% New - Infrastructure 3% New - Industrial 1% New - Commercial 6% New - Private Sector 16% RMI - Merchanting - Public Sector 11% RMI - Merchanting - Private Sector 33% RMI - Retail 24%

2013

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Capital Markets Day – 3 December 2013 22

Mobile-enabled SME customer behaviour

Increased price

transparency

Fixed prices
SME customers
Consumer & Merchanting

businesses

Transaction capability

Product information and

specification

Consistent range offline,

in catalogue and online

Selective range

extension stocked once

Transactional website
Real-time availability
Delivery windows
Click & Collect capability
Easy to pay / on-account

Price comparison Product search Customer engagement

New customer attraction
Customer retention and

reorder strategy

Relevant offers
Email / direct mail / SMS

£ £

£

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Capital Markets Day – 3 December 2013 23

Online penetration remains low in our sector

0.0 0.5 1.0 1.5 2.0 2.5 2007 2009 2011 2013 2015 2017 Market size (£ billion)

Estimated 3% of UK building products market is online

Source: Conlumino, August 2013

1 2 3 4 5 6 7 8 9 2007 2009 2011 2013 2015 2017 Online penetration (% of market)

UK DIY & Gardening online penetration currently 7%

Source: Conlumino, August 2013

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Capital Markets Day – 3 December 2013 24

Staying ahead of changes in buying behaviour

Wickes Tile Giant Toolstation CPS, PTS, F&P, Spares BSS, CCF, Keyline Travis Perkins & Benchmarx

Smaller customers Fixed pricing

Tendered quote / framework agreements

Variable pricing Medium customers Larger customers

Increasing price transparency
End-users challenging

tradesmen on material prices

Jobbing tradesmen able to

better compare prices

Lightside and high-value

products

Large customers demanding

increasing levels of service & value

Merchants Consumer Contracts

Customer sizes Small = 1-2 employees Medium = 2-15 employees Large = 15+ employees

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Capital Markets Day – 3 December 2013 25

Significant structural opportunities for growth

Builders merchant sector

remains fragmented

>3,000 independent competitors
perating from 5,400 branches
Opportunity to expand into

adjacent categories

Source: TPK analysis

£33bn addressable market + £11bn adjacent categories

Independents £14 billion 5,400 branches Adjacent categories £11 billion TP £5 billion 1,932 branches Nationals £14 billion 5,000 branches

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Capital Markets Day – 3 December 2013 26

Well positioned to exploit opportunities

Market growth indicators are encouraging
Market developments create compelling opportunities
Significant opportunities for structural growth
Evolving portfolio model to exploit opportunities

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Capital Markets Day – 3 December 2013 27

Group value creation

Tony Buffin, Finance Director

SLIDE 28

Capital Markets Day – 3 December 2013 28

Long term, sustainable growth

Accelerate innovation of customer propositions
Expand network and intensify use of space
Exploit scale advantage
Prioritise investments throughout the portfolio

SLIDE 29

Capital Markets Day – 3 December 2013 29

Levers of value creation

Customer innovation Optimising network Scale advantage Portfolio management

Improved value
Extended range
Product

development

Format renewal
Technology enabled
Multi-channel
TP expansion &

modernisation

Wickes national

footprint

Plumbing & Heating

format clarity

Implants intensify

returns

Trade parks
Supply chain

investment

Leverage property

capability

Group sourcing

benefits

Shared technology

investment

Streamlined

central functions

Devolved

management responsibility

Disciplined

planning & capital allocation

Regular market

updates

Enabled through people & evolution of unique culture

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Capital Markets Day – 3 December 2013 30

Group value creation evolution

Evolving our model to exploit growth opportunities
Streamlined central functions
Devolved management responsibility
Disciplined capital allocation & planning
Scale economies creating…
Superior customer propositions
Tiered & sequenced 2014 & 2015 capital spend
Constant monitoring of investments & returns
Regular updates to market on progress

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Capital Markets Day – 3 December 2013 31

Evolving our portfolio model

Scale economies Streamlined central functions Devolved management responsibility Disciplined planning & capital allocation Superior customer propositions

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Capital Markets Day – 3 December 2013 32

Evolving our portfolio model

More people in the businesses, fewer in

the centre

Closer to customers
Better decision-making
Greater ownership
Selective investment in shared services
Product innovation & sourcing
Distribution efficiency
Modernising heritage IT systems
Enterprise-wide network property planning

Scale economies Streamlined central functions Devolved management responsibility Disciplined planning & capital allocation Superior customer propositions

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Capital Markets Day – 3 December 2013 33

Evolving our portfolio model

Divisional structure
Re-aligned to better reflect customers, markets

& operations

Division CEOs
Increased responsibility
Greater accountability
Model to attract & retain best talent
Incentives aligned with shareholder

interests

Scale economies Streamlined central functions Devolved management responsibility Disciplined planning & capital allocation Superior customer propositions

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Capital Markets Day – 3 December 2013 34

Re-aligning our divisional structure

TP Group Executive Plumbing & Heating Contracts General Merchanting Consumer

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Capital Markets Day – 3 December 2013 35

Evolving our portfolio model

Competition for capital
Tiered allocation of capital
Enhanced ROCE focus at division,

business & branch level

Discipline in recycling capital

Scale economies Streamlined central functions Devolved management responsibility Disciplined planning & capital allocation Superior customer propositions

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Capital Markets Day – 3 December 2013 36

Proven businesses, categories and formats delivering attractive returns Invest in our propositions to meet changing customer needs & stay ahead of competition Restart infrastructure investment and re-engineer businesses to enable future outperformance Divest if better use of our capital

Deploying capital to attractive opportunities

Extending leadership 1

Investing to grow 2

Re-engineering & infrastructure build

3

Divestment

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Capital Markets Day – 3 December 2013 37

Capex step-up to maintain advantage

100

200 300 400 500 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

Capex Acquisition Interest in Associate Wickes BSS Average

Acquisitions + capital expenditure (£m)

£225m p.a. 1,200

Source: Company data

£110m p.a.

Average (ex-Wickes / BSS)

Maintain leading

positions

Exploit market

developments

Ensure long-

term competitive advantage

Wickes acquisition BSS acquisition Other acquisitions

Capital deployed to

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Capital Markets Day – 3 December 2013 38

Re-engineering & infrastructure build

3

Strong returns

Tiering 2014-15 capital to attractive investments..

Property Maintenance Group capex range

Extending leadership 1

Investing to grow 2 Good returns

Range of returns

LAROCE Capex(p.a) 20-30% 15-20% 0-30% 15-20%

£20-50m

£10-20m £20-30m £20-40m £60-70m £130-170m

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Capital Markets Day – 3 December 2013 39

Re-engineering & infrastructure build

3

…focussed on investments with good track record

Extending leadership 1

Investing to grow 2 Maturity Examples 3-5 years 4-6 years

New TP / Wickes
Toolstation implants
New formats
Regional DC
IT systems
Branch relocations

Strong returns

Good returns

Range of returns

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Capital Markets Day – 3 December 2013 40

Evolving our portfolio model

Leveraged buying scale
Direct sourcing
Volume benefits
Branded product development
Lower cost distribution
Volume enabling DC consolidation
Lower stock holding
Range extension & better availability
Vehicle utilisation
Property access
Covenant & availability of capital
Site aggregation

Scale economies Streamlined central functions Devolved management responsibility Disciplined planning & capital allocation Superior customer propositions

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Capital Markets Day – 3 December 2013 41

Strong understanding of our

customers‟ needs in every business

Continuous evolution of customer

proposition

Evolving our portfolio model

Scale economies Streamlined central functions Devolved management responsibility Disciplined planning & capital allocation

Superior customer propositions

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Capital Markets Day – 3 December 2013 42

Group value creation evolution

Evolving our model to exploit growth opportunities
Streamlined central functions
Devolved management responsibility
Disciplined capital allocation & planning
Scale economies creating…
Superior customer propositions
Tiered & sequenced 2014 & 2015 capital spend
Constant monitoring of investments & returns
Regular updates to market on progress

SLIDE 43

Capital Markets Day – 3 December 2013 43

Division plans

John Carter | Tony Buffin

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Capital Markets Day – 3 December 2013 44

Improving group returns

Continue to outperform in each of our markets
Operating margin prospects:
General Merchanting

sustain

Plumbing & Heating

good growth

Contracts

good growth

Consumer

good growth

Targeting medium term double digit EBITA growth p.a.
Add 200-300bps to lease adjusted ROCE over medium term
Deliver strong & consistent growth in shareholder returns

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Capital Markets Day – 3 December 2013 45

General Merchanting

Clear market leader with significant opportunities for long term growth

SLIDE 46

Capital Markets Day – 3 December 2013 46

Travis Perkins growth levers

Opportunities to expand & modernise network
Focus on improving customer proposition
Re-invest some of the benefits of operating leverage
Extend market leadership & sustain sector leading
perating margins

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Capital Markets Day – 3 December 2013 47

General Merchanting overview

Strengths Developments / opportunities

Market leader; 15% share
Strong local customer

relationships

Range breadth
Availability
Delivery
National branch network
Efficient lightside distribution

capability

Scale buying & sourcing

advantages

Sector leading margins

645 TP branches 11.5% EBITA margin* £1.5bn sales* 6,700 employees

Price transparency &

consistency

Fixed prices resonating with

tradesmen

Multi-channel development
Managed services & FM markets

developing

Market remains fragmented -

large share with independents / regional

Mid-sized customers increasing

*Year ended 31 December 2012

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Capital Markets Day – 3 December 2013 48

Travis Perkins strategy

Expand the network Invest in safety & develop our people Modernising formats Regional distribution Multi-channel development Enhanced CRM Category management & pricing Toolhire expansion Managed services development Enhanced IT capability Sales & Profit drivers Enablers

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Capital Markets Day – 3 December 2013 49

Operational standards Merchandising Pricing Range / layout

Branch expansion & format modernisation

Current Trial 2018 Improved customer service Efficiency Training & service Marketing

Significant scope for network

expansion & relocation

5-15 net new branches p.a.
Co-location on trade parks
Benchmarx & Toolhire implants
Progressive roll-out of “TP 2018”

branch modernisation programme

Strong returns from new &

refurbished branches

Branch model modernisation (“TP 2018”)

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Capital Markets Day – 3 December 2013 50

Where we will get to Next steps Where we are now

Multi-channel development

1 2 3

Clean & functional
Passive
Non-transactional

Customer experience Infrastructure

Leading online gateway
Interactive & social hub
Seamless experience across channels
Integrated CRM
Transactional capability
Integration to pricing systems
Account management
Click & collect
Branch to site delivery for heavyside
Branch collection only for lightside
Branch acting as call centre
Heavyside distribution improvements

expanding range & availability

Lightside range access from DCs
DC direct to site picking
Cross-channel fulfilment for lightside
CRM and account management

systems development

Contact centre coordination

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Capital Markets Day – 3 December 2013 51

Managed services expansion

Bespoke solutions to public

sector

Rapid growth since inception in

2004 to ~£140m revenue in 2012

Dedicated & experienced bid

teams with strong win rate

Delivered via existing and stand-

alone branch network

Strong return on capital &

encouraging growth

SLIDE 52

Capital Markets Day – 3 December 2013 52

General Merchanting ambition

Measure Current Medium-term Ambition Network expansion

645 TP branches 5-15 net new branches p.a.

Like-for-like sales growth outperformance

0-5% 1-4%

Operating margin improvement prospects

Sector leading Sustain

Capital expenditure

£44m* £40-60m p.a.

Lease adjusted ROCE

Add 200-

300bps

Outperformance through:
Local customer relationships
Consistent range and range extension
Better availability
Sourcing & own label development
Product knowledge and easy to transact
Format improvements
Network & multi-channel development
Managed services expansion

*Year ended 31 December 2012

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Capital Markets Day – 3 December 2013 53

Plumbing & Heating

Strong market position with compelling investment options

SLIDE 54

Capital Markets Day – 3 December 2013 54

Plumbing & Heating growth levers

Clear propositions serving plumbing & heating,

bathroom installer & contract customers

Intensify use of space through new showroom

concept and spares implants

Multi-channel, sustainability & own label product

development

SLIDE 55

Capital Markets Day – 3 December 2013 55

Plumbing & Heating overview

Strengths Market developments / opportunities

Nationwide branch network
Diverse customer base

(contracts, plumbers & bathroom installers)

Deep knowledge of upstream

supply & downstream usage

Improving direct sourcing

capability & own label development

Strong showroom format

(Endeavour)

525 branches 4.5% EBITA margin* £1.3bn sales* 3,700 employees

Heating recovery, bathroom

slower

Price transparency online
Continued concentration &

strength in manufacturer base

Intense competitor activity
Spares market potential

*Year ended 31 December 2012

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Capital Markets Day – 3 December 2013 56

Plumbing & Heating strategy

Division-wide property planning Excellent IT More standalone CPS branches Talent to lead UK‟s #1 P&H business Tailored multi- channel capability Supply chain efficiencies Roll-out of Endeavour & spares Better pricing tools Develop contract business Stay Safe Sales & Profit drivers Enablers

SLIDE 57

Capital Markets Day – 3 December 2013 57

Showrooms helping tradesmen win new

business

Scale rollout
69 opened
~40 p.a. over medium term
Simplified range
Strong own label merchandising
Better product selection tools
Sales team assisting end-users
Next day availability
Lower capital intensity

Endeavour showrooms

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Capital Markets Day – 3 December 2013 58

Exploiting PlumbNation acquisition
Development of multi-channel

proposition:

Ordering capability
Product information tools
Extended range
Account management
Remote fulfilment

Multi-channel development

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Capital Markets Day – 3 December 2013 59

Plumbing & Heating ambition

Outperformance through:
Clarity of contracts and installer

propositions

Enhanced branch pricing tools
Sourcing & own label development
Spares implants
CPS network expansion
Endeavour showroom rollout
Multi-channel establishment
Sustainable solutions growth

Measure Current Medium-term Ambition Network expansion

525 branches ~10 net new branches p.a.

Like-for-like sales growth outperformance

0-3% 0-3%

Operating margin improvement prospects

Good

Capital expenditure

£11m* £10-20m p.a.

Lease adjusted ROCE

Add 150-

250bps

*Year ended 31 December

SLIDE 60

Capital Markets Day – 3 December 2013 60

Contracts

Business in leading position well placed to exploit market trends

SLIDE 61

Capital Markets Day – 3 December 2013 61

Contracts growth levers

Category & product extension
Improved service, technical expertise & procurement

solutions

Network optimisation

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Capital Markets Day – 3 December 2013 62

Contracts overview

Strengths Market developments / opportunities

Strong market position
BSS #1
CCF #2
Keyline #1
Deep specialist sector

knowledge & technical expertise

Strong customer relationships
Range breadth in business
Access to group range

181 branches 5.2% EBITA margin* £0.9bn sales* 2,600 employees

Greater service level demands
Customer seeking single

contact points

Offsite fabrication
Pricing and credit pressures

from main contractors

Attractive category & customer

adjacencies

*Year ended 31 December 2012

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Capital Markets Day – 3 December 2013 63

Contracts strategy

Growth in insulation Market-leading customer service Major presence in partitions Multi-channel capability Branch network expansion Contract pricing & project management Deepen sector & category specialism Category expansion Develop BSS Industrial offer Excellent IT Sales & Profit drivers Enablers

Whole Contracts Division

SLIDE 64

Capital Markets Day – 3 December 2013 64

Category expansion

Highways specialism and national coverage for Rail / Utilities Expanded Product Range & new suppliers New customers acquisition and share of wallet expansion Launch of Sektor (interior solutions) & dedicated technical partition sales team Dedicated sales & technical insulation team & expanded insulation product range New customers acquisition and share of wallet expansion Strengthen technical expertise & extend industrial product range Trial Centres of Excellence with additional industrial specialists Procurement solutions for key accounts

SLIDE 65

Capital Markets Day – 3 December 2013 65

Contracts division ambition

Outperformance through:
Deeper product knowledge and

customer service

Extended ranges
Selective network expansion
Category expansion
Sourcing & own label development

Measure Current Medium-term Ambition Network expansion

181 branches 1-2% net space growth

Like-for-like sales growth outperformance

0-3% 1-3%

Operating margin improvement prospects

Good

Capital expenditure

£12m* £10-20m p.a.

Lease adjusted ROCE growth

Add 200-

300bps

*Year ended 31 December 2012 for Specialist division

SLIDE 66

Capital Markets Day – 3 December 2013 66

Consumer

Well positioned businesses with attractive expansion opportunities

SLIDE 67

Capital Markets Day – 3 December 2013 67

Consumer growth levers

Enhance Wickes proposition to tradesmen &

serious „DIYers‟

Full nationwide Wickes footprint
Toolstation network expansion
Continued multi-channel development

SLIDE 68

Capital Markets Day – 3 December 2013 68

Consumer overview

Strengths Market developments / opportunities

Differentiated tradesman &

serious DIY proposition

Strong brand awareness
Nationwide delivery capability
UK wide kitchen & bathroom

installer network

Growing multichannel

presence

Strong marginal returns from

new stores

227 Wickes / 108 TG £1.3bn sales* 5.6% EBITA margin* 7,300 employees

DIY market recovering slowly
Fixed prices resonate with

tradesmen

Brands vital to credible trade offer
Lightside only operators
Multi-channel penetration greater

than trade only market

*Year ended 31 December 2012 (including Toolstation)

SLIDE 69

Capital Markets Day – 3 December 2013 69

Wickes strategy

Enhanced customer proposition Smarter working stores Better value for Tradesmen Great engaged people delivering More efficient buying LFL growth from drive categories More efficient distribution Right stores, in the right place Convenient in any channel Smarter Support Sales & Profit drivers Enablers

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Capital Markets Day – 3 December 2013 70

Right stores in the right place

Opportunity to expand network
5-10 new stores per year
Strong returns on new capital
11 Toolstation implants currently
~20 more in 2014
Driving foot traffic
Contribution to lease cost
Rapid payback
Trial Tile Giant implants
Further refinement of sizing and

format

SLIDE 71

Capital Markets Day – 3 December 2013 71

Low prices & limited assortment
Fewer, stronger deals…
…on the products the trade buy most
Introducing essential trade brands
Pricing clarity
Stronger campaign and in-store POS
Leverage group scale in direct

sourcing

Better value for tradesmen

SLIDE 72

Capital Markets Day – 3 December 2013 72

Toolstation

Fast growing business with superior customer proposition

SLIDE 73

Capital Markets Day – 3 December 2013 73

Toolstation overview

Strengths Market developments / opportunities

Market leading proposition
Fixed, low prices
Excellent availability
Branded and entry products
Multichannel platform
Efficient stocking model
Consistent range in all channels
Strong branch returns
Significant scope for expansion

143 branches in UK 5 branches in Netherlands 1,300 employees

Price transparency
Fixed prices resonating with

tradesmen

Multi-channel development
Tradesmen responding to

better availability

Promiscuity between

competitors and channels

SLIDE 74

Capital Markets Day – 3 December 2013 74

Flexible multi-channel model

Find Product Order Product Receive Product

>11,000 SKUs
Order any

channel

Collect any

channel

7 days a week

SLIDE 75

Capital Markets Day – 3 December 2013 75

Toolstation strategy

Keep operating model simple
Expand network by ~100 branches
Scale distribution capability
Target Wickes implants to best
pportunities
Refine operating model efficiency
Trial use of operating model in
ther businesses
Continue Europe trial

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Capital Markets Day – 3 December 2013 76

Consumer division ambition

Outperformance through:
Clearer and sharper pricing
Catalogue and online range extension
Improved availability in Wickes
Format renewal and network expansion
Toolstation expansion & implants
Tile Giant implants only
Driving multichannel harder

Measure Current Medium-term Ambition Network expansion

227 Wickes 108 TG 143 TS 5-10 net new p.a. Implants ~20 p.a.

Like-for-like sales growth outperformance

Flat Above market

Operating margin improvement prospects

Good

Capital expenditure

£18m* £30-40m p.a.

Lease adjusted ROCE

Add 150-

250bps

*Year ended 31 December 2012

SLIDE 77

Capital Markets Day – 3 December 2013 77

Streamlined shared services

Tony Buffin

SLIDE 78

Capital Markets Day – 3 December 2013 78

Retaining shared services with scale benefit

Contracts

Supply Chain – distribution efficiency Commercial – product innovation & sourcing IT – modernising heritage systems Property – enterprise wide network planning

TP Group Executive General Merchanting Plumbing & Heating

HR & Finance

Consumer

SLIDE 79

Capital Markets Day – 3 December 2013 79

Easier supply of product

Easy Ordering Fast & Efficient Optimised Local

Better range

availability / stock accuracy

Further automation of

branch replenishment

Lower stockholding
Better range

management tools

More time for

customers

Virtually extending

yards & branches via:

Consolidating light

goods warehouses

Bulky goods

network

DC efficiency

programmes

Optimisation of 3,200

vehicle fleet

Route planning tools
On time in full solution

SLIDE 80

Capital Markets Day – 3 December 2013 80

Optimising our distribution network

Current Future Warehouse type # DCs Size

(000 sq ft)

# DCs Size

(000 sq ft)

Merchant PDC 5 940 2 1,300 Retail PDC 4 810 3 690 RDC 1 85 7 770 Timber 5 30.5 acres 2 12.5 acres Toolstation 3 340 3 340 Other 4 470 2 270 22 19

Centralising core

lightside

Extending heavyside

range & availability

New capacity
Other consolidation

SLIDE 81

Capital Markets Day – 3 December 2013 81

Doubling own branded sales

Further investment in innovation

centre

Consolidated buying
LCC direct sourcing capability
Own brand development in Wickes
Exclusive house brands
New product development sold

beyond Travis Perkins

Own / exclusive Third-party

SLIDE 82

Capital Markets Day – 3 December 2013 82

Target heritage systems
Build & Buy
Open source
New organisation
Wider and deeper capability
„Agile‟ development approach

Investing for the future

Mobile web offer
Delivery on-time & in-full
Expert source for product

information

Account services

Re-engineering & Infrastructure

Core platforms at end of life
Build infrastructure for growth
Network upgrade
Stock management
Wickes
Travis Perkins
Plumbing & Heating
Merchant businesses
Supply Chain

Investment Theme Business Focus Approach

Increased IT investment

SLIDE 83

Capital Markets Day – 3 December 2013 83

Property investment to create value

Shape of estate to meet:
Changing customer propositions
Supply chain investment
Site availability
Enhanced focus on merchant

network planning

Secure freehold sites to develop
Coordination across the group:
Optimal asset use
Trade parks
Continuation of development profits

Guildford trade park

SLIDE 84

Capital Markets Day – 3 December 2013 84

… resulting in evolved freehold mix

Travis Perkins more reliant on expensive

property leases than peer group

Strategic ambition to increase freehold mix:
secure strategically important sites
value creation through redevelopment
source of stored value
often lower cost over long-term
Freehold mix dependent on:
opportunities for securing sites
availability of on-balance sheet financing
relative freehold/leasehold value

Peer composite Travis Perkins

Leasehold2 85% Freehold1 15% Leasehold2 60% Freehold1 40%

3

1. Book value of debt
2. 8 times operating lease rentals
3. Peer composite includes Kingfisher, SIG, Grafton, Wolseley

SLIDE 85

Capital Markets Day – 3 December 2013 85

Capital management

Tony Buffin

SLIDE 86

Capital Markets Day – 3 December 2013 86

Strategic ambition

Targeting investment grade credit metrics
Diversify sources of debt to access funding at lower cost
Funding flexibility for property purchases and infill & category acquisitions
Balance between funding availability & efficient cost of capital
Progressive and sustainable dividends through the cycle
Narrow dividend cover range to 2.50x – 3.25x from 2014
Moving to the centre of the range over the next 12-24 months

SLIDE 87

Capital Markets Day – 3 December 2013 87

On-balance sheet debt reduction…

(2,000) (1,500) (1,000) (500) 500 1,000 1,500 Dec 08 Dec 09 Dec 10 Dec 11 Dec 12 Dec 13E

UK syndicated loan US guaranteed senior notes Unsecured loan notes Operating lease rentals (capitalised at 8x)

On Balance Sheet Off Balance Sheet

LA debt1 £1,928m £1,816m £1,813m £1,877m £1,907m ~£1,850m Gearing2 65% 55% 48% 47% 45% 43% Fixed charge cover3 2.3x 2.4x 2.6x 2.8x 2.6x ~3.0x

1. Lease adjusted (balance sheet debt + 8x rentals)
2. Ratio of lease adjusted debt to equity plus LA Debt
3. Ratio of EBITDA plus rentals to interest plus rentals

…but „real‟ leverage reduction modest

SLIDE 88

Capital Markets Day – 3 December 2013 88

Capital structure & investment priorities

Dec-12

Equity £2.5bn Property Leases £1.4bn UK Bank Debt - £0.4b US notes - £0.1b

December 2013E capital structure

Key ratios

Gearing1 43% Fixed charge cover2 ~3.0x LA Debt : EBITDAR3 ~3.0x

1. Ratio of lease adjusted debt to equity plus lease adjusted debt
2. Ratio of earnings before interest, tax, depreciation, amortisation and rentals to interest plus rentals
3. Ratio of lease adjusted debt to earnings before interest, tax, depreciation, amortisation and rentals

£4.4bn

Invest in growth

capex

Working capital

funding

Progressive

dividend policy

Property & infill

acquisitions

SLIDE 89

Capital Markets Day – 3 December 2013 89

Dec-12

Debt maturity profile

Property Leases £1.4bn UK Bank Debt - £0.4bn US notes - £0.1bn

December 2013E lease adjusted debt position

January 2016 December 2016 Weighted average lease expiry of ~10.5 years

No immediate need to

refinance existing facilities

Diversify debt funding

sources over next 12-24 months

Property leases likely to be

smaller component of financing mix in future, but will remain

SLIDE 90

Capital Markets Day – 3 December 2013 90

Capital management targets

Measure Current1 Target2

Fixed charge cover3 ~3.0x 3.5x LA Debt : EBITDAR4 ~3.0x 2.5x Dividend cover5 ~3.4x 2.50x – 3.25x

1. Estimate for period ending 31 December 2013 2. Ambition to be in, above, below applicable metric in 2015-2017 3. Ratio of earnings before interest, tax, depreciation, amortisation and rentals to interest plus rentals 4. Ratio of lease adjusted debt to earnings before interest, tax, depreciation, amortisation and rentals 5. Ratio of EPS (p) to dividend (p)

Ambition to achieve targets
ver the next 3 years
Achieve targets through

earnings increases

Limited deleveraging for 12-24

months given:

1. Value additive investment plans
2. Expected growth in working capital
3. Dividend progression

SLIDE 91

Capital Markets Day – 3 December 2013 91

Our growth ambition

John Carter

SLIDE 92

Capital Markets Day – 3 December 2013 92

Expansion of each of our businesses

Consumer

Create national

coverage

Reinvigorate

Wickes proposition

Toolstation

expansion

Intensified use of

Wickes space:

Toolstation
Tile Giant

General Merchanting

Network expansion

& modernisation

Managed services
Toolhire expansion
Multi-channel

investment

CRM development
Category & pricing

management

Plumbing & Heating Contracts

CPS expansion
Network

coordination

Spares &

showroom rollout

Supply chain

efficiency

Multi-channel
Pricing

management

Deeper category

management

Insulation
Partitions
Industrial
Civils
Multi-channel

development

Network growth
Contract pricing

SLIDE 93

Capital Markets Day – 3 December 2013 93

Levers of value creation

Customer innovation Optimising network Scale advantage Portfolio management

Improved value
Extended range
Product

development

Format renewal
Technology enabled
Multi-channel
TP expansion &

modernisation

Wickes national

footprint

Plumbing & Heating

format clarity

Implants intensify

returns

Trade parks
Supply chain

investment

Leverage property

capability

Group sourcing

benefits

Shared technology

investment

Streamlined

central functions

Devolved

management responsibility

Disciplined

planning & capital allocation

Regular market

updates

Enabled through people & evolution of unique culture

SLIDE 94

Capital Markets Day – 3 December 2013 94

Long term, sustainable growth

Accelerate innovation of customer propositions
Expand network and intensify use of space
Exploit scale advantage
Prioritise investments throughout the portfolio

SLIDE 95

Capital Markets Day – 3 December 2013 95

Welcome

Leveraging our position as the largest supplier of building materials in the UK

SLIDE 96

Capital Markets Day – 3 December 2013 96

Questions

John Carter | Tony Buffin | Division Management

SLIDE 97

Capital Markets Day – 3 December 2013 97

Appendices

i) Executive Biographies | ii) Division revenue reconciliation | iii) Branch numbers

SLIDE 98

Capital Markets Day – 3 December 2013 98

i) Executive biographies

Joined Sandell Perkins as a management

trainee in 1978.

Held a variety of management positions

before being appointed Managing Director, Operations in 1996.

Became Chief Operating Officer in

February 2005 and was appointed Deputy Chief Executive in December 2011. John Carter Chief Executive

Appointed Finance Director in April 2013.
Chartered accountant and previously

Chief Financial Officer for Coles Group in Australia from 2009.

Prior to Coles; CFO and CEO of Aimia Inc

Europe.

Previously financial controller of Boots

Group. Tony Buffin

Finance Director

Appointed as a Travis Perkins regional

managing director in 2005.

Joined the executive committee in 2009.
Retail experience with Wickes, Somerfield

and The Big Food Group. Norman Bell Group Strategy & IT Director

Joined Travis Perkins in 2006 as Group

HR Director.

Held various HR director roles Argos,

Safeway Food Stores, Ladbroke Group and Storehouse Group plc.

Previously non-executive director of

Leeds Building Society.

Carol Kavanagh HR Director

SLIDE 99

Capital Markets Day – 3 December 2013 99

i) Executive biographies

Joined Wickes in 2002 as a Buying

Manager.

Progressed to Wickes Buying Director

in 2007.

Became Group Commercial Director in

2011, before joining the executive committee in 2013. Ian Preedy Group Commercial Director

Joining the group in 2014 as Company

Secretary and General Counsel.

Currently Company Secretary and

General Counsel at Lafarge Tarmac.

Previous experience at Nokia and BOC

Edwards. Deborah Grimason General Counsel

Joined Travis Perkins in 2005 as Group

Property Director.

Fellow of Royal Institution of Chartered

Surveyors.

Formerly MD property Dixons Group plc

and non-executive director of Quintain Estates & Development plc.

Chairman of BRC Property Committee.

Martin Meech Group Property Director

Joined Travis Perkins as Group supply

chain director in 2006.

Awarded Retail Week Supply Chain

Leader of the Year in 2012.

Previously executive board member of

Howdens, MFI and various roles for Sainsbury‟s and Iceland Foods. Robin Proctor Group Supply Chain Director

SLIDE 100

Capital Markets Day – 3 December 2013 100

i) Executive biographies

Joined Travis Perkins in 2012.
Previously Deputy CEO of Northgate

plc, president of Newark inOne service Inc and various roles at Premier Farnell plc. Paul Tallentire CEO Plumbing & Heating

Started with Keyline Builders Merchants

in 1977 becoming finance and commercial Director.

Became managing director of Keyline

after acquisition by Travis Perkins.

Most recently led CCF, Keyline and

Benchmarx businesses. Arthur Davidson CEO General Merchanting

Joined BSS Industrial in 2003 as

commercial director and promoted to managing director in 2005.

Prior to the Travis Perkins acquisition in

2010 promoted to BSS Group board in 2009.

Previously worked for Newey & Eyre

and Hagemeyer in various operational roles. Frank Elkins CEO Contracts

Joined as Wickes Managing Director in

2012.

Previously Chief Operating Officer for

Asda, CEO of Tesco, South Korea and worked for Tesco in Czech Republic and Slovakia.

Also worked for Tarmac and Safeway in

various roles.

Simon King MD Wickes

SLIDE 101

Capital Markets Day – 3 December 2013 101

ii) Division revenue reconciliation

1H 2013 (£m) Previous structure New structure General Merchanting 754 787 Consumer (inc. Toolsation) 587 587 Plumbing & Heating 792 623 Contracts 317 453 Total 2,450 2,450 2012 (£m) Previous structure New structure General Merchanting 1,457 1,524 Consumer (inc. Toolsation) 1,153 1,153 Plumbing & Heating 1,632 1,286 Contracts 604 883 Total 4,845 4,845

SLIDE 102

Capital Markets Day – 3 December 2013 102

iii) Branch numbers

Old Structure Jun-13 Brownfield Consolidation Oct-13 Travis Perkins 644 1

645

Keyline 88

88

CCF 30 1

31

Rinus Roofing Supplies 13 1

14

Benchmarx 84

84

Specialist 215 2

217

Plumbing Trade Supplies 316

(4)

312 BSS Industrial 62

62

City Plumbing 191

191

Direct Heating Spares 1

1

F&P Wholesale 9

9

Connections 1

1

PTS Ireland 7

7

Birchw ood Price Tools 3

3

Solfex 1

1

Plumbing & Heating 591

(4)

587 Wickes * 225 2

227

Tile Giant 107 1

108

Toolstation ** 139 9

148

Consumer 471 12

483

Group 1,921 15 (4) 1,932 New Structure Jun-13 Brownfield Consolidation Oct-13 Travis Perkins 644 1

645

Benchmarx 84

84

Rinus Roofing Supplies 13 1

14

General Merchanting 741 2

743

Keyline 88

88

CCF 30 1

31

BSS Industrial 62

62

Contracts 180 1

181

Plumbing Trade Supplies 316

(4)

312 City Plumbing 191

191

Direct Heating Spares 1

1

F&P Wholesale 9

9

Connections 1

1

PTS Ireland 7

7

Birchw ood Price Tools 3

3

Solfex 1

1

Domestic Plumbing 529

(4)

525 Wickes 225 2

227

Tile Giant 107 1

108

Toolstation 139 9

148

Consumer 471 12

483

Group 1,921 15 (4) 1,932 * includes 13 stand-alone K&B showrooms ** includes 5 stores in The Netherlands

SLIDE 103

Capital Markets Day – 3 December 2013 103

Contacts

Investors Travis Perkins plc Matt Johnson Lodge Way House matt.johnson@travisperkins.co.uk Harlestone Road +44 7584 491 284 Northampton, NN5 7UA