INTER IN TERIM IM R RESU ESULTS TS. 201 2015 Inte teri rim - - PowerPoint PPT Presentation

Inte teri rim R Results

• ts. 20

2015 1

IN INTER TERIM IM R RESU ESULTS

• TS. 201

2015

Inte teri rim R Results

• ts. 20

2015 2

Agen genda

Gro roup hi highl hlight hts John C hn Car arter p3 Financi nancial al r review To Tony B Buffin p5 Strat ategy u updat date John C hn Car arter p19

Appe ppendice ndices p31

Inte teri rim R Results

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2015 3

Co Cont ntinued m ed market et

• u
• utperfor
• rmance

ce

2015 in interi terim k key ey mes essages ges

1

Inves esting i ng in n sustai tainab able growth th

2

Growth th not t mark arket t cons nstrained ned

3

• Strong volume growth and continued outperformance of our markets
• Pleasing performance across TP, Consumer and Contracts (notably Keyline & CCF)
• Focused increase in capex to £131m to drive strong returns
• Continued branch expansion with deep pipeline
• Still only 18 months into the five year plan, lots more work still to do
• Majority of our markets remain fragmented
• Our businesses building on strong structural advantages
• All businesses investing to further enhance customer propositions

In Inve vestin ing t g to drive ive s sustain inable gr growth in in e earnin ings gs and TSR TSR

Inte teri rim R Results

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2015 4

Group

• up pe

perfor

• rmance

mance hi highl hlight hts

• Continued sales growth outperformance
• Strong underlying profit growth
• Investing for long-term growth
• Strong return on capital
• Dividend growth underpinning TSR

Capex ex dou

• ubled t

to

• £13

131m 1m LA LAROCE ma main intain ined ed at 1 10.5% .5% Div ivid iden end growth h of

• f

20% 0% to

• 14.75p

.75p 9.0% 0% EBITA gr growth (ex ex- Prop

• perty)

y) Rev even enue e growth h of

• f

7. 7.8% to £2 £2.9b 9bn

Definitions disclosed in Appendix VI

Inte teri rim R Results

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2015 5

FINANC NANCIAL AL REV EVIEW IEW. TONY B Y BUFFIN FFIN

Inte teri rim R Results

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2015 6

Group

• up pe

perfor

• rmance

mance s summar ummary

Definitions disclosed in Appendix VI

Si Six months e nths ende nded d 30 J June ne H1 2 1 2015 15 H1 2 1 2014 14

Ye Year-on

• n-ye

year cha hang nge

Revenue £2,943m £2,731m

7.8%

Like ke-fo for-lik like sale sales g s growth th 5. 5.7% 10. 0.2%

(4. 4.5)ppt ppt

Adj djuste sted EBI EBITA £1 £185m £1 £175m

5. 5.7%

Adjusted EBITA excluding property profits £182m £167m

9.0%

Adjusted profit before tax £167m £162m

3.1%

Adjusted net profit after tax £134m £130m

3.1%

Free cash flow £156m £189m

(17.5)%

Adj djuste sted d ear arning nings pe s per shar share 54.2p 53. 3.4p

1. 1.5%

Div ivide idends pe nds per shar share 14.75p 12.25p

20.4% .4%

Lease ase adj adjuste sted R ROCE 10. 0.5% 10. 0.5%

• Lease adjusted net debt

£1,824m £1,807m

£17m

Inte teri rim R Results

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2015 7

• Good volume growth
• utperforming our markets
• Consistent low inflation
• New branches & businesses

contributing 2.1%

• Good H1 sales growth and

strong two-year LFL growth

Definitions disclosed in Appendix VI

LFL sales growth Q1 Q1 Q2 Q2 H1 H1 2014 12.7% 8.1% 10.2% 2015 5.1% 6.3% 5.7% 2 y 2 year ar gr growth 18.4% .4% 14.9 4.9% 16. 6.5% 5%

Cont

• ntinued s

sal ales growt wth out h outpe performa mance nce

£2,731 31m £2, 2,943m

H1 2 1 2014 14 Volum ume Price / e / m mix ix Tradi ading ng day days New ew s sit ites es & acquis isit itio ions H1 2 1 2015 15

Group rev even enue g e growth

6.0% 0% (0 (0.3 .3)% )% 2. 2.1%

7.8 .8%

Inte teri rim R Results

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2015 8

Unde nderlying ng op

• perat

ating ng l leverag age mai maint ntai ained

Ge Gene neral al Merchantin hanting Plu Plumbing bing & H Heating ating Contr ntracts acts Consu nsumer Gro roup H1 2014 EBITA margin 9.8% 3.6% 6.8% 5.6% 6. 6.4% Gross margin 1.7% 1.0% (1.2)% 0.2% 0. 0.8% Operating costs (1.3)% (1.5)% 0.7% (0.2)% (0 (0.7)% )% H1 2015 EBITA before ∆ in property profits 10.2% 3.1% 6.3% 5.6% 6. 6.5% Property profits (0.8)%

• 0.3%

(0 (0.2)% )% H1 2 2015 EBI EBITA mar argin in 9. 9.4% 3. 3.1% 6. 6.3% 5. 5.9% 6. 6.3%

Definitions disclosed in Appendix VI

• Mix of business growth in Contracts

reducing Division margin

• Timing of property profits impacting

reported margin

• General Merchanting underlying margins

sustained

• P&H 2014 result benefitted from one-off

contract and sourcing income

Inte teri rim R Results

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2015 9

Gene neral al M Merchant hanting ng pe perfor

• rmance

mance s summar ummary

• Good sales growth from all

regions

• Good cost price management

and focus on pass-through

• Strong Benchmarx growth

following showroom upgrades

• Underlying profit growth – up

12.3%

Si Six months nths ende nded d 30 30 J Jun une H1 2 1 2015 15 H1 2 1 2014 14

∆

Revenue £979m £908m

7.8%

Like-for-like growth 6.7% 14.6% (7.9)ppt Adj djuste sted EBI d EBITA £92m £92m £8 £89m 9m

3.4% .4%

EBITA margin 9.4% 9.8% (40) bps Underlying EBITA (ex-Property profit) £91m £81m 12.3%

Lease ase adj adjuste sted R ROCE 16% 6% 17 17%

• Definitions disclosed in Appendix VI

Inte teri rim R Results

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2015 10 10

Plumbi umbing ng & & Heat ating pe perfor

• rman

mance ce s summar ummary

• Re-segmentation on plan with

CPS now consistently showing positive like-for-like growth

• Improving sales growth

throughout the half

• Tough heating market and strong

Q1 comparatives

• Primaflow integration

progressing well

Definitions disclosed in Appendix VI

Si Six months nths ende nded d 30 30 J Jun une H1 2 1 2015 15 H1 2 1 2014 14

∆

Revenue £667m £672m

(0.7)%

Like-for-like growth (2.9)% 7.4%

(10.3)ppt

Adj djuste sted EBI d EBITA £2 £21m £2 £24m 4m

(1 (12.5)% )%

EBITA margin 3.1% 3.6% (50) bps Underlying EBITA (ex-Property profit & one-off items) £21m £22m (4.5)%

Lease ase adj adjuste sted R ROCE 8% 8% 8% 8%

Inte teri rim R Results

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2015 11 11

Cont

• ntract

acts p perfor

• rmance

mance summar ummary

Definitions disclosed in Appendix VI

Si Six months nths ende nded d 30 30 J Jun une H1 2 1 2015 15 H1 2 1 2014 14

∆

Revenue £605m £513m

17.9%

Like-for-like growth 13.9% 11.1%

2.8ppt

Adj djuste sted EBI d EBITA £3 £38m £3 £35m

8. 8.6%

EBITA margin 6.3% 6.8% (50) bps Underlying EBITA (ex-Property profit) £38m £35m 8.6%

Lease ase adj adjuste sted R ROCE 13 13% 12%

1ppt ppt

• Both EBITA and ROCE improved
• Keyline growth remains well

ahead of the market

• CCF accelerating market share

gains

• Competitive BSS market with

later cycle growth

Inte teri rim R Results

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2015 12 12

Cons

• nsume

umer pe perfor

• rmance

mance s summar ummary

• Wickes share gains and double-

digit 2-year LFL

• Good underlying profit growth
• Range review costs of £4m in

H1 to continue

• New Wickes format trials

underway

• 18 new Toolstation stores
• pened in the half

Definitions disclosed in Appendix VI

Si Six months nths ende nded d 30 30 J Jun une H1 2 1 2015 15 H1 2 1 2014 14

∆

Revenue £693m £638m

8.6%

Like-for-like growth 6.5% 6.8%

(0.3)ppt

Adj djuste sted EBI EBITA £41 41m £3 £36m 6m

13. 3.9%

EBITA margin 5.9% 5.6% 30 bps Underlying EBITA (ex-Property profit) £39m £36m 8.3%

Lease ase adj adjuste sted R ROCE 7% 7% 6% 6%

1ppt ppt

Inte teri rim R Results

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2015 13 13

Str trong & g & susta tain inable le ea earn rnin ings gr growth th

Si Six months e nths ende nded d 30 J June ne H1 2 1 2015 15 H1 2 1 2014 14

∆

Adjusted EBITA £185m £175m

5.7%

Net finance cost £(18)m £(13)m

(38.5)%

Adjusted profit before tax £167m £162m

3.1%

Adjusted tax £(33)m £(32)m

3.1%

Adj djuste sted pr d profit it af afte ter tax tax £1 £134m 4m £130 30m

3. 3.1%

Weighted average shares 247m 244m

1.2%

Adj djuste sted ear arning nings pe s per shar share 54.2p 53. 3.4p

1. 1.5%

Div ivide idends pe nds per shar share 14.75p 12.25p

20.4% .4%

• £5m lower property

profits

• Adverse non-cash

currency MTM charge of £4m

• Confidence to increase

interim dividend by over 20%

Definitions disclosed in Appendix VI

Inte teri rim R Results

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2015 14 14

£1 £185m 5m £1 £156 56m

£4 £49m £3 £3m £(3 (31)m )m £(2 (26)m )m £(1 (10)m )m £(1 (14)m )m Adj djusted E d EBI BITA De Depre reciation & & no non- n-cash Net p property disp sposa sal Working c cap apital al Maint ntena nanc nce Cap CapEx Interest Tax Free ee c cash f flow

Ca Cash f flo low fundin ing in g inves estm tmen ents & & gr growin ing d g div ivid iden end

Definitions disclosed in Appendix VI

• Cash conversion of

84%

• Solid working capital

management despite Contracts growth

• Modest growth in net

debt to fund freeholds

(2014: £189m) (2014: £175m)

Growth capex £60m Acquisitions £14m Dividends £64m Pension contribution £9m £147m Freeholds £45m Use of FCF £192m Financed by Free cash flow £156m Increase in net debt £37m

Inte teri rim R Results

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2015 15 15

Re Re-eng ngine ineering ing & & inf infrastr astructu cture b build ild 3

Stron

• ng

g retu turns rns Exte tendi nding ng lea eader ersh ship

1 Investi ting to g to grow

2

Good Good return turns

Ra Range o

• f

f retu turns ns Ex Exam ample les Cape apex YT YTD £2 £20m £2 £25m £1 £15m

Inves estm tmen ent pla lans d driv rive r e retu eturn rns

Property Maintenance Gro roup cape capex £45m £26m £13 131m 1m

• New TP / Wickes / Toolstation / CCF
• Benchmarx implants / showrooms /

toolhire implants

• New formats / P&H conversions
• Distribution centres
• Multi-channel development
• IT infrastructure upgrades

Inte teri rim R Results

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2015 16 16

10. 0.5% 10. 0.5% 0. 0.1% 0. 0.1%

H1 2 1 2014 14 In Increas ase i in E EBIT ITA Increa ease in e in L LAC ACE H1 2 1 2015 15

Disci cipline ned capi d capital manag management

Definitions disclosed in Appendix VI

• 10.5% LAROCE maintained:

– increased capital investment – freehold property acquisitions – contract business growth – very strong 2014 cash flow

• Strong returns from new

investments

– new branches & implants – branch conversions & refurbishments – heavyside & lightside distribution

capabilities

Group LA LAROCE mo movemen ement

Inte teri rim R Results

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2015 17 17

Good

• od pr

prog

• gress t

towar ards ds me medi dium um-te term rm r ratio tios

Six ix months nths ende nded d 30 30 J Jun une

Med edium t ter erm guida dance nce

H1 2 1 2015 15 H1 2 1 2014 14

Yo YoY ∆

YE 2 YE 2014 Net debt

• £395m

£298m

£97m

£358m Lease debt

• £1,429m

£1,509m

£(80)m

£1,469m Lease adjusted debt

• £1,824m

£1,807m

£17m

£1,827m LA Ge Gear aring ing

• 43.

3.8% 44.1%

(3 (30)b )bps

44.1% Fix ixed c d char harge co cover

3. 3.5x

3. 3.3x 3. 3.0x

0. 0.3x

3. 3.1% LA LA D Deb ebt : E : EBIT ITDAR AR

2.5x 5x

2.8x 2.8x

• 2.8x

Definitions disclosed in Appendix VI

Inte teri rim R Results

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2015 18 18

Reiter eiterate te 2015 f full y ll yea ear r gu guid idance

• Mixed inflation outlook
• 6-7% sales growth expected in 2015
• Low double digit EBITA growth
• Property profits of ~£20m (2014: £26m)
• Effective tax rate maintained at ~20% (2014: 19.7%)
• Capex expected to be >£200m given freehold property purchases
• Dividend growth above EPS – medium-term cover range 2.50x-3.25x

Definitions disclosed in Appendix VI

Inte teri rim R Results

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2015 19 19

STR TRATEG TEGY Y UPD UPDATE. JO JOHN C N CAR ARTER

Inte teri rim R Results

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2015 20 20

Mark arket t frag agmentati tation

Our ur growt wth not h not cons constrai ained b d by the he mar market

1

Str Structu tural al ad advan antag tages

2

Su Superi rior r prop

• pos
• sitions

3

• Majority of the markets we compete in are highly fragmented
• Proliferation of small family-owned businesses
• Our businesses are #1 or #2 in each of our markets, but with relatively low market shares
• Br

Branc nch net h network: 2,000 locations in UK with strong financial position underpinning tight yields & site access

• Sour

urcing ng & sup upply c cha hain: n: sourcing terms, range, stocking and distribution efficiency

• IT:

T: selective shared development of software platforms and volume hardware purchasing

• Range &

nge & value: ue: improved promotions & KVI pricing, range extension, own label development, availability

• Space:

e: new branch & store opening programme with implants intensifying space

• Cha

hannel nnel, f format & & cus ustomer er ser ervice: e: investment in online channels, new formats and better service

Frag agmente ted mark arkets ts + + str truc uctur tural al ad advan antag tage + + sup uperi rior

• r prop
• pos
• siti

tion

• n = sus

ustai tainab able le m mark arket t shar are g gai ains

Inte teri rim R Results

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2015 21 21

Medi dium um-long

• ng t

term m sus ustai ainab able RM RMI I growt wth Smaller ller families ilies d driv rivin ing g 225,000 ne 000 new w hous househo holds ds per y er yea ear 27.8 .8m m home homes acr acros

• ss t

the he count country

Source: Office of National Statistics

On Only 60 y 60% % mai maint ntai aine ned t to

• a s

a sat atisfact actor

• ry

lev level el

Inte teri rim R Results

• ts. 20

2015 22 22 (40) (35) (30) (25) (20) (15) (10) (5) 5 2005 005 2007 007 2009 009 20 2011 20 2013 20 2015

Stab able e environme

• nment

nt f for

• r cont

continue ued i investme ment nt

• Property transactions softened

following MMR

– Lagged effect on RMI in Q2 – H2 improvement expected

• First positive consumer

confidence index in 10 years

– Falling unemployment trend – Real wage growth – Consistent regional house price growth

Rol

• llin

ing 12 m mon

• nth con

consumer con r confid idence ce in index

Source: GFK, July 2015 Source: HM Revenue & Customs / Bank of England, July 2015

Rol

• llin

ing 12 m mon

• nth hou
• usin

ing t tra ransact ction ion & m & mort

• rtgage approva

rovals

56 58 60 62 64 66 68 70 80 85 90 95 100 105 Q1 Q1'14 Q2 Q2'14 Q3 Q3'14 Q4 Q4'14 Q1 Q1'15 Q2 Q2'15 Monthly housing transactions Monthly mortgage approvals Housing transactions (‘000) Mortgage approvals (‘000) Mortgage Market Review effective

Inte teri rim R Results

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2015 23 23

Lev ever ers of valu lue c e crea eatio tion

Custo stomer inno innovatio ation Optim ptimising ising ne netw twork Scale cale ad advantag antage Portf tfolio lio ma managemen ement

• 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

Enab able led th throug

• ugh peop
• ple

le & & e evoluti lution

• n of
• f un

unique que c cultur ulture

Inte teri rim R Results

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2015 24 24

Inno Innovat ation

• n i

in n our

• ur cus

custome

• mer pr

propos

• position
• ns

Ge Gene neral M al Merchantin hanting Consu nsumer Plu Plumbing bing & & Heating ating Contr ntracts acts

• Branch format trial underway
• Range extended through

supply chain investments

• Trade Offers site launched
• Benchmarx ‘selection centre’

proving a differentiator

• New Keyline branch operating

model trial

• Division-wide project tracking
• Sector / product specialists
• National tool hire coverage
• City Plumbing largest trade

network of showrooms

• Re-segmentation adding 180

City Plumbing branches

• Ongoing improvement to

PTS operating model

• Value advantage maintained
• Range reviews in progress
• Concept store trial underway
• Wickes online upgrade
• Toolstation same day click & collect

Inte teri rim R Results

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2015 25 25

Opt ptimi mising our

• ur br

branc anch and s h and stor

• re ne

networ

• rk

Ex Expanding panding the the ne netw twork Optim ptimising ising the the ne netw twork Last 18 months delivered:

• 17 new Travis Perkins branches
• 7 new Wickes stores
• 50 new Toolstation stores
• 54 new Benchmarx branches
• 2 new Tile Giant stores
• 3 new CCF branches

Guidance remains consistent:

• 5-15 new Travis Perkins p.a.
• 10-15 new Wickes p.a.
• 30+ Toolstation p.a.
• 1-2% Contracts space p.a.
• P&H network

segmentation programme involving 180 branches

• More than 100 implants

delivered across Toolstation, Benchmarx, Tool Hire, Tile Giant, Spares over last 18 months

• 16 Contracts branches

reconfigured with TP

• 7 trade parks now
• perating
• More implants and ~5

trade parks p.a.

Inte teri rim R Results

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2015 26 26

Exploi

• iting our
• ur struct

uctural ad advant antag ages

Supp pply C Chain hain IT IT Sourcing cing Pr Prope perty ty

• Creation of unique infrastructure
• 2 lightside hubs complete
• 3 of 4 heavyside range centres
• Continuous improvement to

availability, range and flow

• Management of tail estate
• Placing right business in right

site

• Releasing cash whilst ensuring
• wnership of strategic sites
• Ongoing property profit stream
• Consolidating volume orders in

key categories

• 55 strong direct sourcing team

in China

• Innovation through own-label

development

• TP core systems upgrade

underway

• Electronic proof of delivery

(ePod) rolling out

• CRM under development
• Developing a digital mindset

Inte teri rim R Results

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2015 27 27

Empo mpowered manag d manageme ment dr driving ng pe perfor

• rmance

mance

Devo volve lved ma d manageme ment respon

• nsib

ibilit ility

1

Disciplined ned planni nning ng & & ca capital alloca llocation

• n

2

Strea eamlined c ned cent entral func nctions ns

3

• Business Unit and Division management teams strengthened
• Management teams responsible for strategic planning and operational decisions
• Group provides support, allocates capital, incentivises and monitors performance
• Annual planning process now in its third cycle
• Ongoing capital approval for all material capex and opex
• Rigorous capital approval structure and increased competition for capital
• Property, HR, Supply Chain & Finance teams now embedded in businesses
• IT remains largely centralised for efficiency whilst systems upgraded
• Ongoing work to embed low cost culture to support businesses

Dr Drivin iving s g sustain inable gr growth in in e earnin ings gs and TSR TSR

Inte teri rim R Results

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2015 28 28

Sus ustai aina nable me medi dium um-te term rm rev even enue gr e growth th

• Low-single digit market volume

growth assumed

• Low levels of inflation
• Structural advantages &

investment opportunities generate consistent market

• utperformance
• ~6-7% revenue growth p.a.

0% 0% 2% 2% 4% 4% 6% 6% 8% 8% Marke rket vo volu lume Infla lation

• n

Ou Outpe per- formanc nce Ne New spa pace

Sal ales growt wth p h p.a. a. 2-3% 0-2% 1-2% 1-2%

Inte teri rim R Results

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2015 29 29

• Continue to outperform in majority of our markets
• Good operating margin prospects for the Group over the long term
• Targeting sustainable low double digit EBITA growth p.a.
• Add 200-300bps to lease adjusted ROCE over medium term
• Focus on 3 key areas:

– Modernise Travis Perkins – Transform Wickes – Re-segment Plumbing & Heating businesses

Cons

• nsistent g

gui uidance dance

Supp pply c chain hain in investo stor br brie iefing ing 6 November 2015 At our new Heavyside Range Centre in Tilbury

Inte teri rim R Results

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2015 30 30

QUES ESTIO TIONS NS.

Inte teri rim R Results

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2015 31 31

AP APPEN ENDI DICES ES.

I. I. Mar Market i indi ndicat cators II. II. Rev Reven enue a e analysis is III. III. Adju djusted e d ear arni ning ngs r rec. IV.

• IV. Br

Branc anch n h numbe bers V. V. Like ike-fo for-like ike sa sales s grow

• wth

VI.

• VI. Def

efin init itio ions

Inte teri rim R Results

• ts. 20

2015 32 32

I. . Mar arket i indi ndicat cator

• rs

+1 +17pt Site Site v vis isito itors rs +22pt 22pt Site Site r reservatio tions +2 +2% Mo Mortga gage a ge approvals +3% 3% Hous using t ng trans nsactions ns +3% 3% Hous using p ng prices es +6pt pt Cons nsum umer er c conf nfidenc ence +12pt 2pt Clim limate te fo for p r purc rchases 0% Equity ity w with ithdrawal +2 +2% Reta tail Sa il Sale les gro rowth th +3% 3% Cons nstruc uction o n out utput ut +9pt pt Exp xpecte ted w work rklo load (5 (5)pt pt Trade c e conf nfidenc ence +8 +8% New c ew cons nstruc uction n

• rd

rders rs (1 (14)% )% Arc rchite itect w t work rk lo load

Definitions disclosed in Appendix VI

Inte teri rim R Results

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2015 33 33

II II. . Re Revenue ue anal analysis – si

six mont nths hs ende ended 3 d 30 June ne 2 2015 15

Ge Gene neral M al Merchantin hanting Plu Plumbing bing & & Heating ating Consu nsumer

46.1 22.0 12.7 20.1 53.9 .9 78. 8.0 9. 9.3 21 21.9 47 47.4 24. 24.4 11. 11.5 33. 33.6 19. 9.1

0% 20% 40% 60% 80% 100% Deliver ery Payment nt Cat Categ egory Geography

Nort rthern rn Midlands South We h West South E Eas ast Ti Timb mber Forest Heavys avyside Lig ightside side P&H H / O Oth ther Cas ash Cr Credit Colle

• llected

Del eliver ered ed 58.7 88.5 9.1 18.8 14. 4.3 8. 8.0 28. 8.0 12. 2.8 13 13.9 34. 4.9 39. 9.3 35.2 .2

0% 20% 40% 60% 80% 100% Deliver ery Payment nt Cat Categ egory Geography

Nort rthern rn Midlands South We h West South E Eas ast Ti Timb mber Forest Heavys avyside Lig ightside side P& P&H Cas ash Colle

• llected

Del eliver ered ed 19.6 11.3 36.9 80 80.4 88. 88.7 19. 9.4 15 15.4 28. 8.3 99. 99.3

0% 20% 40% 60% 80% 100% Deliver ery Payment nt Cat Categ egory Geography

Nort rthern rn Midlands South We h West South E Eas ast P& P&H Cas ash Cr Credit Colle

• llected

Del eliver ered ed Cr Credit 11.5

Contr ntracts acts

26.7 5.2 33.5 73. 73.3 94 94.8 17 17.5 61 61.6 16. 6.5 32. 2.5 34. 4.5

0% 20% 40% 60% 80% 100% Deliver ery Payment nt Cat Categ egory Geography

Nort rthern rn Midlands South We h West South E Eas ast Ti Timb mber Forest Heavys avyside Lig ightside side P&H H / O Oth ther Cas ash Cr Credit Colle

• llected

Del eliver ered ed

Inte teri rim R Results

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2015 34 34

III III. . Adjus djusted e d ear arni ning ngs r reconci conciliation

• n

H1 201 2015 H1 201 2014 Six months ended 30 June PAT AT EPS PS PAT AT EPS PS Sta tatu tuto tory e earn rnings £12 £127m 51. 1.3p £123m 23m 50 50.5p 5p Amortisation of intangibles £9m 3.6p £9m 3.6p Tax on amortisation £(2)m (0.7)p £(2)m (0.7)p Adj djusted e d earni ning ngs £13 £134m 54. 4.2p £130m 30m 53.4p .4p

Inte teri rim R Results

• ts. 20

2015 35 35

IV

• IV. Br

. Branc anch n h numbe umbers

2009 009 20 2010 20 2011 20 2012 20 2013 20 2014 H1’ 1’15 15 Opening 1,262 1,303 1,813 1,868 1,896 1,939 1, 1,975 New 46 519 120 48 58 101 58 58 Closures (5) (9) (65) (20) (15) (65) (29 29) Clo losing 1,303 303 1, 1,813 13 1, 1,868 1, 1,896 1, 1,939 1, 1,975 2,004 004

Hist storical n l network g growth

* 4 Rudridge branches acquired and still branded as Rudridge Branch numbers exclude City Heating Spares, Managed Services and Toolhire implants

31 D December 20 2014 Ne New si sites Ne New impl mplants Cl Closures es Re Rebr brands nds 30 J 30 Jun une 20 2015 Travis Perkins 653 7

• 660

660 Benchmarx 119 11 9

• 13

139 Gene neral Mercha hant nting ng 772 18 18 9

• 799

City Plumbing 236 2

• (5)

48 48 28 281 PTS 239 2

• (20)

(48 48) 17 173 Other 30

• 30

30 Plumbi bing ng & & H Heating ng 505 05 4

• (25

25)

• 48

484 Keyline 75 1 + 4*

• 80

80 BSS 64

• (1)
• 63

63 CCF 32 2

• 34

34 Contra tracts ts 17 171 7

• (1)

1)

• 17

177 Wickes 232 2

• (2)
• 23

232 Toolstation 184 18

• 20

202 Tile Giant 111

• (1)
• 110

110 Co Consumer 527 27 20 20

• (3)

3)

• 544

544 Gr Group 1, 1,975 49 49 9 (29 29)

• 2,004

004

Inte teri rim R Results

• ts. 20

2015 36 36

• V. Li

Like ke-fo for-lik like s e sales les gr growth th

Six months ended 30 June 2015 Gen ener eral P&H &H Co Cont ntract cts Co Cons nsumer To Total Volume 4.9% (2.1)% 12.1% 10.8% 6. 6.0% Price / mix 1.8% (0.8)% 1.8% (4.3)% (0 (0.3)% )% Like Like-for

• r-like s

e sales es 6.7% (2.9)% 13.9% 6.5% 5. 5.7% Trading days

• Expansion

1.1% 2.2% 4.0% 2.1% 2. 2.1% Tota tal s l sale les gro rowth 7. 7.8% (0 (0.7)% )% 17. 7.9% 8. 8.6% 7. 7.8%

Inte teri rim R Results

• ts. 20

2015 37 37

• V. Li

Like ke-fo for-lik like s e sales les gr growth th

Q3 Q3 20 2013 13 Q4 Q4 20 2013 13 Q1 Q1 20 2014 14 Q2 2 20 2014 14 Q3 Q3 20 2014 14 Q4 Q4 20 2014 14 Q1 Q1 20 2015 15 Q2 2 20 2015 15 General 10.3% 10.1% 16.6% 13.3% 10.9% 11.6% 8.1% 5.3% P&H 4.7% 20.5% 13.2% 1.2% (5.1)% (13.3)% (6.1)% 1.0% Contracts 9.4% 7.4% 12.8% 9.7% 9.6% 15.8% 15.1% 12.9% Consumer

• 6.9%

6.9% 6.8% 6.4% 6.7% 6.0% 6.9% Li Like-fo for-li like sa sale les 6. 6.3% 3% 11.8% 12.7% 7% 8.1% 5. 5.7% 7% 3.5% 5% 5. 5.1% 6. 6.3% 3% H1 20 2013 13 H2 2 20 2013 13 H1 20 2014 14 H2 2 20 2014 14 H1 20 2015 15 General 2.8% 10.1% 14.6% 11.3% 6.7% P&H (2.3)% 12.8% 7.4% (9.7)% (2.9)% Contracts 4.9% 8.5% 11.1% 12.4% 13.9% Consumer (1.1)% 3.3% 6.8% 6.4% 6.5% Li Like-fo for-li like sa sale les 0. 0.9% 9% 9. 9.0% 0% 10 10.2% 2% 4.6% 6% 5. 5.7% 7%

Like ike-fo for-like b ike by quarter er Like ike-fo for-like ike by h half y yea ear

Inte teri rim R Results

• ts. 20

2015 38 38

VI

• VI. D

. Defini nition

• ns

Me Metric Defin init itio ion EBITA Earnings before interest, tax and amortisation Earning per share (“EPS”) Ratio of net profit after taxation to weighted number of ordinary shares outstanding Adjusted EBITA / Adjusted EPS EBITA or EPS adjusted for exceptional items and amortisation (see Appendix III for reconciliation) Lease adjusted ROCE Ratio of earnings before interest, tax, amortisation and 50% of annual property rental expense to debt plus equity plus eight times annual property rental expense Lease adjusted debt On-balance sheet debt (excluding derivative fair valuation adjustments) plus eight times annual property rental expense LA Gearing Ratio of lease adjusted debt to equity plus lease adjusted debt Fixed charge cover Ratio of earnings before interest, tax, depreciation, amortisation and property rentals to interest plus property rentals LA Debt : EBITDAR Ratio of lease adjusted debt to earnings before interest, tax, depreciation, amortisation and property rentals Dividend cover Ratio of earnings per share to dividends per share Free cash flow (“FCF”) Net cash flow before dividends, growth capital expenditure, pension contributions & financing cash flows Total Shareholder Return (“TSR”) Ratio of opening market price per share to closing market price per share less opening market price per share plus dividends per share during the period

Inte teri rim R Results

• ts. 20

2015 39 39

VI VI. . Defini nition

• ns (

(cont continue ued) d)

Me Metric Defin init itio ion

Site visitors House Builders Federation Survey / monthly / May 2015 / Balance score compared to a year ago Site reservations House Builders Federation Survey / monthly / May 2015 / Balance score compared to a year ago Mortgage approvals Bank of England / monthly / June 2015 / number of approvals % change year on year Housing transactions HM Revenue & Customers / monthly / June 2015 / number of houses sold above £40k % change year on year Housing prices Nationwide / monthly / June 2015/ house price inflation % change year on year Consumer confidence GFK / monthly / July 2015/ index score – movement on previous year Climate for purchases GFK / monthly / July 2015 / index score – movement on previous year Equity withdrawal Bank of England / quarterly / Q1 2015 / Change in Equity withdrawal as % of net earnings Retail sales growth British Retail Consortium / monthly / June 2015 / LFL % change year on year Architect work load Mirza and Nacey Survey / quarterly / Q1 2015 / Index Construction output Construction output YTD ONS / monthly / May 2015 / % change year on year Trade confidence Travis Perkins survey materials spend / quarterly / Q2 2015 view of Q3 2015 / Balance score Expected workload Federation of Master Builders / quarterly / Q2 2014 view of Q3 2015 / Balance score New construction orders Office for National Statistics / quarterly / Q1 2015 / % change year on year

Inte teri rim R Results

• ts. 20

2015 40 40

CO CONTACT CT.

in inves estor.r .rel elatio ions@travis isperk erkin ins.co .co.u .uk Graeme eme Barn rnes es | | +44 7 7469 4 401 819 gr graeme eme.b .barn rnes es@travis isper erkin ins.c .co.u .uk Matt tt Johns hnson

• n | +4

+44 7584 4 491 2 1 284 ma matt.j .johnson@travis isperk erkin ins.co .co.u .uk

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