FU FULL LL-YEAR YEAR R RESU ESULTS TS. 201 2015 Full - - PowerPoint PPT Presentation

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FU FULL LL-YEAR YEAR R RESU ESULTS TS. 201 2015 Full - - PowerPoint PPT Presentation

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FU FULL LL-YEAR YEAR R RESU ESULTS TS. 201 2015 Full ull-Year R r Results ults. 20 2015 1 Agen Agenda Gr Grou oup hi highl hlight hts John Car hn Carter p3 Financi nancial al r review Ton ony B Buffin in p7 Str

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SLIDE 1

Full ull-Year R r Results

  • ults. 20

2015 1

FU FULL LL-YEAR YEAR R RESU ESULTS

  • TS. 201

2015

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SLIDE 2

Full ull-Year R r Results

  • ults. 20

2015 2

Agen Agenda

Gr Grou

  • up hi

highl hlight hts John Car hn Carter p3 Financi nancial al r review Ton

  • ny B

Buffin in p7 Str trate tegy upd update te John Car hn Carter p20

Appen endices es p29

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2015 3

Co Continued ma marke ket

  • utper

tperform rmance

20 2015 5 key key mes messages ges

1

Invest sting i in su sust stainable le g growth

2

Growth wth driv driven b en by se self lf-help lp p programme me

3

  • Good volume growth and share gains by the majority of businesses
  • TP, Benchmarx, CCF, Keyline, Toolstation and Wickes outperformance
  • P&H restructuring complete providing platform for growth
  • Increased capex to £293m, reflecting long-term return opportunities
  • Continued branch expansion with deep pipeline provided by freehold investment
  • 2 years into the plan, progress in line with our expectations
  • Majority of our markets remain fragmented
  • Businesses are building strong customer propositions & structural advantages
  • Remain judicious in cost and capital management

In Inve vesting ing to

  • drive

ive sustain inable gr growt wth in in earnin ings gs and TSR TSR

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2015 4

Gr Group p per erforma rmance e high ighli ligh ghts ts

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

Gr Growth h ca capex incr ncrea eased to £134 to £134m LAROCE ROCE incr ncrea eased to 10 to 10.5% Divid ividend growth th of

  • f

16 16% to to 44p 44p 8. 8.7% EBIT BITA A gr growth ( h (ex ex- pr prope

  • perty)

ty) Rev even enue e growth th of

  • f

6.5% to % to £5.9b .9bn

Definitions disclosed in Appendix VI

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2015 5

Lever Levers of va valu lue c e crea eati tion

Cu Custo tomer r in innovatio vation Op Optim timis isin ing netw twork rk Sc Scale le ad advant antag age Portf tfolio lio manag anagement nt

  • 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 nabled t d thr hroug

  • ugh pe

h peop

  • ple & e

evolut ution

  • n of
  • f uni

unique que cul cultur ure

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2015 6

Go Good p progr gres ess with th i inves vestmen tment t pr progr gramme mme

  • More competitive

merchanting price structures

  • Wickes enhancing leading

value position

  • TP range expanded through

supply chain infrastructure

  • Wickes range extended online
  • Wickes format trials

generating strong uplift

  • 1hr Click & Collect available

in Toolstation & Wickes

  • Group online sales now over

£200m

  • Repurposed sites to best

brand to optimise returns

  • Accelerated organic

expansion of TP

  • Wickes network growth
  • National footprints in

Contracts businesses

  • Plumbing & Heating network

re-segmentation completed

  • 200 new stores including

100 implants & concessions

  • Trade Park model delivering

attractive returns

  • Lightside network delivered

with capacity to >2020

  • Unique heavyside range

centre model developed

  • Half-way through freehold /

leasehold rebalancing

  • Property asset recycling

funding expansion

  • Better consolidation of

common sourced products

  • Development of own-brands

(e.g. iflo & Scruffs)

  • On track with merchanting

core systems upgrade

  • Division management teams

strengthened

  • More responsibility &

accountability in business units

  • Enhanced planning & capital

allocation process

  • Disciplined approach to

acquisitions & disposals

  • Stronger financial market

communications

Cu Custo tomer r in innovatio vation Op Optim timis isin ing netw twork rk Sc Scale le ad advant antag age Portf tfolio lio manag anagement nt

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2015 7

FINANCIAL FINANCIAL REVIEW REVIEW. TONY BU NY BUFFIN FFIN

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2015 8

Gr Group p per erforma rmance e summa mmary

Definitions disclosed in Appendix VI

Ye Year ende nded 3 d 31 1 De Dece cembe ber 20 2015 20 2014

Ye Year-on

  • n-ye

year cha hang nge

Revenue £5,942m £5,581m

6.5%

Li Like ke-fo for-li like sal sales g es growth 3. 3.8% 7.3% .3%

(3.5) .5)ppt ppt

Adj djust sted EBI EBITA £4 £413 13m £3 £384m

7. 7.6%

Adjusted EBITA excluding property profits £389m £358m

8.7%

Adjusted net profit after tax £307m £291m

5.5%

Free cash flow £317m £255m

24.3%

Adj djust sted ear d earni ning ngs pe s per shar share 12 124.1p 1p 119 119.0p

4. 4.3%

Di Divide dends nds pe per sha share 44.0p .0p 38 38.0p .0p

15. 5.8%

Lease ase adj adjust sted R d ROCE ( E (pr pre-im impairm airment) t) 10.5% .5% 10 10.4%

10 10bp bps

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2015 9

  • Good volume growth,
  • utperforming our markets
  • Low inflation as expected
  • New branches & businesses

contributing 2.7% (2014: 1.1%)

  • Slower growth in H2 given

market weakness

  • Encouraging start to 2016

Definitions disclosed in Appendix VI

LFL sales growth

Q1 Q1 Q2 Q2 Q3 Q3 Q4 Q4 Ful ull-year ar 2014 12.7% 8.1% 5.7% 3.5% 7.3% 2015 5.1% 6.3% 2.6% 1.4% 3.8% 2-year ar growth wth 18 18.4 .4% 14 14.9 .9% 8. 8.4% 4.9 .9% 11.4 11.4%

Furth ther er sales les gr growth th outp tper erforma rmance

£5, 5,58 581m £5, 5,942m 42m

2014 14 Volum lume Pr Price / m / mix New si sites & s & ac acquis isiti tion

  • ns

2015 15

Gr Group reven enue gr e growth

(0 (0.5)% )% 2.7% .7%

6. 6.5% 5%

4. 4.3%

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2015 10 10

Oper erati ting ma g margin ma mainta tained ed

Ge General Merchant hanting ng Pl Plumbi bing ng & H Heatin ting Co Contr trac acts ts Consu nsumer Group 2014 EBITA margin 9.8% 4.8% 6.7% 6.0% 6. 6.9% Gross margin 0.1% 0.1% (0.8)% 1.0% 0. 0.2% Operating costs* 0.1% (0.8)% 0.6% (0.3)% (0 (0.1)% )% 2015 EBITA before ∆ in property profits 10.0% 4.1% 6.5% 6.7% 7.0% .0% Property profits 0.1% (0.8)% 0.4% 0.1% (0 (0.1)% )% 2015 15 EBI EBITA mar argin 10 10.1% 1% 3.3% .3% 6. 6.9% 6. 6.8% 6. 6.9%

  • Mix of business growth changing margin

structure of Contracts Division

  • Good growth in underlying Consumer

margins (30bps ex property & TS Europe)

  • TP sector leading margins maintained
  • P&H network reconfiguration impacting

reported margins (disruption impact)

* Includes Toolstation Europe impairment reversal of £6m in Consumer Definitions disclosed in Appendix VI

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2015 11 11

Gen Gener eral Mer l Merchanti ting g per erforma rmance e summa mmary

  • Outperformed the market
  • Good cost price management &

disciplined overhead control

  • Strong Benchmarx growth

following showroom upgrades

  • Investment in heavy & lightside

supply chain infrastructure

Yea ear ended ended 31 D 1 Decem ecember ber

20 2015 20 2014

∆

Revenue £1,972m £1,873m

5.3%

Like-for-like growth 3.9% 12.9%

(9.0)ppt

Adj djust sted EBI d EBITA £199m 99m £18 £183m

8. 8.7%

EBITA margin 10.1% 9.8% 30bps Underlying EBITA (ex-property profit) £182m £169m 7.7% Underlying EBITA margin 9.2% 9.0% 20bps

Lease ase adj adjust sted R d ROCE 16% 6% 16% 6%

  • Definitions disclosed in Appendix VI
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2015 12 12

Plu lumb mbing g & H Hea eati ting g per erforma rmance s e summa mmary

  • Continued market headwinds
  • Network re-segmentation

complete

  • Underlying EBITA broadly

maintained despite re- segmentation disruption

  • PTS and F&P non-cash

impairment of £141m

Definitions disclosed in Appendix VI

Yea ear ended ended 31 D 1 Decem ecember ber

20 2015 20 2014

∆

Revenue £1,371m £1,353m

1.3%

Like-for-like growth (1.4)% (1.9)%

0.5ppt

Adj djust sted EBI d EBITA £46 £46m £65 65m

(2 (29.2)% )%

EBITA margin 3.3% 4.8% (150)bps Underlying EBITA (ex-property profit) £46m £48m (4.2)% Underlying EBITA margin 3.3% 3.5% (20)bps

Lease ase adj adjust sted R d ROCE 6% 6% 9% 9%

(3 (3)ppt ppt

LAROCE post-impairment 8% 11% (3)ppt

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2015 13 13

Cont ntract acts p s performance ance sum summar ary

Definitions disclosed in Appendix VI

  • Strong sales growth of 13.2%,

particularly in CCF and Keyline

  • BSS’s market more challenging,

but good cost management

  • Underlying EBITA growth of 10%
  • Good growth in LAROCE to 14%

Yea ear ended ended 31 D 1 Decem ecember ber

20 2015 20 2014

∆

Revenue £1,214m £1,072m

13.2%

Like-for-like growth 8.5% 11.8%

3.3ppt

Adj djust sted EBI d EBITA £83 83m £72m 2m

15. 5.3%

EBITA margin 6.9% 6.7% 20bps Underlying EBITA (ex-property profit) £78m £71m 9.9% Underlying EBITA margin 6.4% 6.6% (20)bps

Lease ase adj adjust sted R d ROCE 14 14% 13 13%

1ppt ppt

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2015 14 14

Consumer p mer per erforma rmance e summa mmary

  • All businesses growing well

ahead of their markets

  • Wickes customers recognising

improvements in range, value & in-store experience

  • 40 new Toolstation stores
  • pened in 2015
  • Benefits from £6m Toolstation

Europe impairment reversal

Definitions disclosed in Appendix VI

Yea ear ended ended 31 D 1 Decem ecember ber

20 2015 20 2014

∆

Revenue £1,386m £1,283m

8.0%

Like-for-like growth 5.3% 6.7% (1.4)ppt Adj djust sted EBI d EBITA £95 95m £7 £77m

23.4% .4%

EBITA margin 6.8% 6.0% 80bps Underlying EBITA (ex-property profit) £93m £77m 20.8% Underlying EBITA margin 6.7% 6.0% 70bps

Lease ase adj adjust sted R d ROCE 7% 7% 7% 7%

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2015 15 15

Susta tainable ea le earn rnin ings gs gr growth th underp erpinning g divi ividen end

Yea ear ended ended 31 D 1 Decem ecember ber

20 2015 20 2014

∆

Adjusted EBITA £413m £384m

7.6%

Net finance cost £(31)m £(22)m

(40.9)%

Adjusted profit before tax £382m £362m

5.5%

Adjusted tax £(75)m £(71)m

(5.6)%

Adj djust sted pr d profit afte ter ta r tax £307 307m £291 291m

5.5% .5%

Weighted average shares 247m 244m

1.2%

Adj djust sted earni ning ngs s per per sha share 12 124.1p 1p 119 119.0p

4. 4.3%

Di Divide dends nds pe per sha share 44.0p .0p 38 38.0p .0p

15. 5.8%

Dividend cover 2.8x 3.1x

(0.3)x

  • Non-cash MTM charge

impacting net finance cost by ~£5m

  • Average cost of funding

reduced to 3.6%

  • Continued confidence to

lower dividend cover to mid-point of range

Definitions disclosed in Appendix VI

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2015 16 16

£4 £413 13m £3 £317m 17m

£9 £98m 8m £(96) 96)m £(55) 55)m £(2 (20)m )m £(4 (48)m )m Adjus uste ted EBITA TA Depre reciati ation

  • n &

& no non-ca cash Ne Net di dispo posals Work rking cap apital tal Mai ainte tenan ance Ca CapEx Ex Inte tere rest Ta Tax Fre ree c cas ash flow low

Cash flo low f funding i g inves vestmen tments ts & gr & growing g divi ividen end

Definitions disclosed in Appendix VI

  • Free cash flow

conversion of 77% (2014: 66%)

  • Net working capital

days remained flat

  • Growth in net debt to

fund freehold purchase

(2014: £255m) (2014: £384m)

Free cas cash h flow £3 £317 17m Growth capex £(134)m Acquisitions £(26)m Dividends £(100)m Pension contribution £(23)m Other cash flow £(19)m £15 £15m Freeholds investments £(104)m Incr ncreas ase i in n ne net de debt bt £(89 (89)m )m

£25m 25m

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2015 17 17

Re Re-en engineer ering & g & in infras astr tructu ture b build ild 3

Str trong

  • ng

retu turns rns Exte tendi ding le leadershi hip

1 Inves estin ting g to to gr grow

2

Good

  • od

retu eturn rns

Rang ange o

  • f

retu turn rns Exa xample les Capex ex £49 £49m £5 £57m £28m 8m

In Inves vestmen tment p t pla lans d dri rive ve med medium-term r term retu eturn rns

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

toolhire implants

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

Grow

  • wth ca

capex ex £13 £134m Maintenance capex £55m Capex ex (e (ex-freeho eehold) d) £18 £189m 9m Property additions £104m Asset disposals £(51)m Ne Net capex ex £24 242m

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2015 18 18

Conti tinued ed p progr gres ess to towards med medium-term r term rati tios

Yea ear ended ended 31 D 1 Decem ecembe ber Medi Medium t ter erm guida dance nce

20 2015 20 2014

Yo YoY ∆

Net debt

  • £447m

£358m

£89m

Lease debt

  • £1,443m

£1,423m

£20m

LA LA Gea Gearing g

  • 44.6%

43.4%

120b 20bps

Fixed c d char harge co cover er

3.5x .5x

3.3x .3x 3. 3.2x

0. 0.1x

LA De Debt bt : EBI EBITDAR

2.5x .5x

2.8x 8x 2.8x 8x

  • Definitions disclosed in Appendix VI
  • Greater on-balance

sheet financing a feature of plans

  • Modest lease debt

increase despite sale & leaseback

  • FCC improved
  • LA Debt : EBITDAR

flat despite freehold investment

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2015 19 19

20 2016 gu 6 guid idance

  • No inflation expected
  • 5-6% sales growth
  • ~10% EBITA growth ambition
  • Property profits of ~£20m (2015: £24m)
  • Effective tax rate maintained at ~20% (2015: 19.7%)
  • Capex expected to be ~£170-190m (excluding freehold property)
  • Dividend increase above the level of earnings growth

Definitions disclosed in Appendix VI

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2015 20 20

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

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2015 21 21

Lead ad indicat indicators ar s are enco ncour urag aging ing

+27 +27pt pt Site Site v vis isito itors +1 +14pt 4pt Site Site r reservatio tions +1 +17% Mor

  • rtgag

age ap approval vals +1 +10% Housin ing tr transactio ctions +4% +4% Housin ing p price rices +3pt pt Cons nsum umer c conf nfidenc ence +9pt pt Clim limate te f for r purchases +1. 1.0% Equity ity w with ithdrawal +2. +2.6% Reta tail Sa il Sale les growth th +3% 3% Constr tructio ction o

  • utp

tput (16) 16)pt pt Exp xpecte cted w work rklo load +1 +10pt pt Trade c e conf nfidenc ence 0% 0% New c New cons nstruc uction n

  • rd

rders rs (1 (16)% )% Archite itect w ct work rk lo load

Definitions disclosed in Appendix VI

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2015 22 22

Pri rincipal l ma market i rket indicato tors i imp mprovi ving

Source: HM Revenue & Customs, February 2016 / Company data

  • Strong correlation between housing transactions

and repair, maintenance & improvement spend

  • Consumer confidence around the highest point in

last 10 years

(5)% 0% 5% 10% 15% (15)% (5)% 5% 15% 25% 35% 45%

Jul 2014 Oct 2014 Jan 2015 Apr 2015 Jul 2015 Oct 2015 Jan 2016 Apr 2016

GM GM L LFL FL sa sales s growth th Housing ng t trans ansac action n year ar-on

  • n-ye

year g r grow rowth

General Merchanting quarterly LFL sales growth Housing transaction growth (lagged by 9 months)

Source: GFK, February 2016

(50) (40) (30) (20) (10) 10

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

Con Consume mer Con r Confide fidence in inde dex

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2015 23 23

In Inves vestin ting f g for r lo long-term term susta tainable gr le growth th

  • Significant investment increase

– catch up on legacy

underinvestment in key areas

– step up in growth capex

  • Investments have a range of

returns and maturity profiles

  • £104m property investment in

2015 has ~30bps short-term drag on LAROCE

2-3% 0-2% 1-2% 1-2%

In Inve vestme ment are rea 201 2014-201 2015 ca capex ex LAR LAROCE E ra range Matu turi rity ty pro rofi file

Extending leadership £83m 20 - 30% 3 – 5+ years Investing to grow £74m 15 - 20% 3 – 5+ years Infrastructure £57m 0 - 30% 0 – 5+ years Freehold investment £139m 15 - 20% n.a. To Total al £35 £353m 3m Maintenance £105m n.a. n.a.

Freeho eehold investm stment u t usa sage

In use £60m 2016 developments £45m 2017 developments £21m 2018+ developments £13m To Total al £139 £139m

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2015 24 24

In Innova vati tion in our c r custo tomer p mer propositi tions

Gener neral al M Merchant hanting ng Consu nsumer Plu lumbin ing & He Heatin ting Co Contr trac acts ts

  • Range Centres enabling

range extension

  • Tool Hire growing rapidly
  • Benchmarx ‘selection centre’
  • Strong Managed Services

performance

  • Keyline category expansion
  • Sektor & specialist insulation

growth in CCF

  • Infrastructure investment (e.g.

EPOD)

  • City Plumbing network of

trade showrooms

  • Re-segmentation

programme now complete

  • Further efficiencies in F&P

and PTS

  • Further value investment
  • Wickes range reviews
  • Wickes format trials

performing well

  • Online growth in Wickes,

Toolstation & Tile Giant

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2015 25 25

Exp xpanding & g & o

  • ptimis

timising g our r netw etwork rk

Ex Expandi panding ng the ne he network Op Optim timis isin ing th the n netw twork rk Last 2 years delivered:

  • 31 Travis Perkins branches
  • 13 Wickes stores
  • 73 Toolstation stores
  • 72 Benchmarx branches
  • 4 Tile Giant stores
  • 9 CCF branches & 1 Keyline

Guidance remains consistent:

  • 5-15 Travis Perkins p.a.
  • 10-15 Wickes p.a.
  • 30+ Toolstation p.a.
  • 1-2% Contracts space p.a.

Last 2 years delivered:

  • 160 P&H branch

conversions

  • More than 100 implants &

concessions delivered across Toolstation, Benchmarx, Tool Hire, Tile Giant, Managed Services

  • 16 Contracts branches

reconfigured with TP

  • 11 trade parks now
  • perating
  • Closed / disposed 136

branches & stores

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2015 26 26

Exp xplo loiti ting g our s r scale le adva vanta tages ges

Su Supply Ch y Chain ain IT IT So Sourcin ing Property

  • Further optimisation of lightside

network

  • Tilbury heavyside range centre

fully operational

  • Vehicle upgrade programme

underway

  • Asset disposals generated

£51m cash

  • Reinvested in freehold

acquisitions totalling £104m

  • 48 fascias trading on 11 trade

parks

  • Group sourcing allowing

volume consolidation

  • Businesses leveraging strong

in-house China sourcing team

  • Innovation through own-label

development

  • TP core systems upgrade

continuing

  • EPOD landed in TP, now

extending to other businesses

  • More to do in developing a

Group-wide digital mindset

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2015 27 27

  • On track with our plans originally laid out in December 2013
  • 2014 began mobilising, with 2015 accelerating implementation
  • 2016 to maintain momentum & drive returns
  • Focus on 3 key areas:

– Accelerate modernisation of Travis Perkins – Continue with Wickes transformation – Exploit the restructured Plumbing & Heating businesses

Build lding g on a yea ear o r of i inves vestmen tment

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2015 28 28

QUES UESTIONS TIONS.

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2015 29 29

APPEN ENDI DICES ES.

I. I. Rev Reven enue a e analysis is II. II. Adju djust sted e d ear arni ning ngs r s rec. III. III. Br Branc anch n h numbe bers IV.

  • IV. Sales

es d driv iver ers by Div ivis ision ion V. V. Like Like-fo for-like ike sal sales s grow

  • wth

VI.

  • VI. Def

efin init ition ions

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2015 30 30

  • I. Reven

evenue e analys ysis – year

ar e ende nded 31 De 1 Dece cember 2015 15

Gener neral al M Merchant hanting ng Plu lumbin ing & He Heatin ting Consu nsumer

46.6 22.3 11.8 20.1 53 53.4 .4 77.7 77.7 9. 9.4 22 22.1 46. 6.8 24 24.1 11. 11.8 33. 33.7 20. 0.2

0% 20% 40% 60% 80% 100% Del eliver ery Pa Payme ment Cat ategory ry Ge Geog

  • grap

raphy

Nort rthern ern Midl dlands ds Sou

  • uth

h West Sou

  • uth

h East Timb imber er Fores rest Heavys vyside Lightsi side de P& P&H H / Ot Other Ca Cash sh Cred redit it Collect ected ed Del eliv ivered ered 66.5 89.5 8.8 18.0 33. 33.5 8.9 .9 23 23.3 13 13.6 14 14.1 34. 4.8 44 44.6 33. 33.9

0% 20% 40% 60% 80% 100% Del eliver ery Pa Payme ment Cat ategory ry Ge Geog

  • grap

raphy

Nort rthern ern Midl dlands ds Sou

  • uth W

h West Sou

  • uth E

h East Timb imber er Fores rest Heavys vyside Lightsi side de P&H Ca Cash sh Collect ected ed Del eliv ivered ered 30.9 10.8 30.7 69. 69.1 89. 9.2 28 28.0 15.0 5.0 26. 6.3 98 98.6

0% 20% 40% 60% 80% 100% Del eliver ery Pa Payme ment Cat ategory ry Ge Geog

  • grap

raphy

Nort rthern ern Midl dlands ds Sou

  • uth

h West Sou

  • uth

h East P&H Ca Cash sh Cred redit it Collect ected ed Del eliv ivered ered Cred redit it 11.5

Co Contr trac acts ts

26.7 5.0 34.0 73 73.3 .3 95.0 5.0 14 14.7 63 63.2 21. 1.2 30. 0.1 32. 2.8

0% 20% 40% 60% 80% 100% Del eliver ery Pa Payme ment Cat ategory ry Ge Geog

  • grap

raphy

Nort rthern ern Midl dlands ds Sou

  • uth W

h West Sou

  • uth E

h East Timb imber er Fores rest Heavys vyside Lightsi side de P& P&H H / Ot Other Ca Cash sh Cred redit it Collect ected ed Del eliv ivered ered

slide-31
SLIDE 31

Full ull-Year R r Results

  • ults. 20

2015 31 31

II

  • II. A

Adju justed ted ea earn rnin ings gs r rec econcili liati tion

201 2015 201 2014 Year ended 31 December Ea Earnin ings gs EPS PS Ea Earnin ings gs EPS PS Ba Basic ea c earni ning ngs & & EPS £168 £168m 67 67.9p 9p £2 £259m 9m 10 106.1p 1p Exceptional items

  • Wickes store closure
  • £(10)m

(4.1)p

  • P&H network reconfiguration
  • £29m

11.9p

  • Rinus Roofing disposal
  • £4m

1.6p

  • Impairment of acquired intangibles

£141m 56.9p

  • Amortisation of intangibles

£18m 7.3p £18m 7.3p Tax on amortisation £(3)m (1.2)p £(3)m (1.2)p Tax on exceptional items £(8)m (3.2)p £(5)m (2.2)p Deferred tax rate change £(9)m (3.6)p

  • Other
  • £(1)m

(0.4)p Adj djusted ea ed earni ning ngs & & EPS £307 307m 12 124.1p 1p £2 £291m 91m 119 119.0p

slide-32
SLIDE 32

Full ull-Year R r Results

  • ults. 20

2015 32 32

  • III. Br

Branc anch h num umbe bers

200 009 20 2010 20 2011 20 2012 20 2013 20 2014 20 2015 Opening 1,262 1,303 1,813 1,868 1,896 1,939 1,975 975 New 46 519 120 48 58 101 124 24 Closures (5) (9) (65) (20) (15) (65) (71) 1) Closing ing 1, 1,303 1, 1,813 813 1, 1,86 868 1, 1,89 896 1, 1,939 1,975 975 2, 2,028 28

Histor

  • ric

ical al n networ

  • rk g

grow

  • wth

Branch numbers exclude City Heating Spares and Toolhire implants

31 D 1 Dece cembe ber 20 2014 Ne New sit ites Ne New im impl plant nts Clos losure ures Re Rebr brands ds 31 D 1 Dece cembe ber 20 2015 Travis Perkins 653 12

  • (9)
  • 656

56 Benchmarx 119 26 12

  • 157

57 Ge General M ral Merc rchan anti ting 772 772 38 38 12 12 (9) 9)

  • 813

813 City Plumbing 236 7

  • (13)

114 344 44 PTS 239 3

  • (33)

(114) 95 95 Other 30

  • (6)

24 24 Plumbing bing & He Heating ing 50 505 10 10

  • (52)

52) 46 463 Keyline & Rudridge 75 5

  • 80

80 BSS 64

  • (3)
  • 61

61 CCF 32 8

  • 40

40 Con

  • ntrac

tracts ts 17 171 13 13

  • (3)

(3)

  • 181

181 Wickes 232 8

  • (4)
  • 23

236 Toolstation 184 40

  • 224

224 Tile Giant 111 2 1 (3) 111 111 Consu sume mer 527 527 50 50 1 (7) 7) 57 571 Group Group 1,975 975 111 111 13 13 (71) 1)

  • 2,

2,028 28

slide-33
SLIDE 33

Full ull-Year R r Results

  • ults. 20

2015 33 33

IV

  • IV. Sa

Sales les dri river vers b by y Divi vision

Year ended 31 December 2015 Gener eneral P& P&H Co Cont ntract cts Co Cons nsumer er To Total Volume 2.8% (0.1)% 7.4% 8.5% 4. 4.3% Price / mix 1.1% (1.3)% 1.1% (3.2)% (0.5) .5)% Like Like-fo for-li like sa sale les 3.9% (1.4)% 8.5% 5.3% 3. 3.8% Trading days

  • Expansion

1.4% 2.7% 4.7% 2.7% 2.7 .7% Tota tal l sa sale les g s growth th 5. 5.3% 1. 1.3% 13. 3.2% 8. 8.0% 6.5% .5%

slide-34
SLIDE 34

Full ull-Year R r Results

  • ults. 20

2015 34 34

  • V. Li

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

Q1 20 2014 Q2 2 20 2014 Q3 20 2014 Q4 20 2014 Q1 20 2015 Q2 2 20 2015 Q3 20 2015 Q4 20 2015 General 16.6% 13.3% 10.9% 11.6% 8.1% 5.3% 1.7% 1.0% P&H 13.2% 1.2% (5.1)% (13.3)% (6.1)% 1.0% 1.7% (1.9)% Contracts 12.8% 9.7% 9.6% 15.8% 15.1% 12.9% 5.5% 1.5% Consumer 6.9% 6.8% 6.4% 6.7% 6.0% 6.9% 2.3% 6.1% Li Like ke-for

  • r-li

like ke sa sales es 12 12.7% .7% 8.1% .1% 5.7% 5.7% 3.5% .5% 5.1% 5.1% 6. 6.3% 3% 2. 2.6% 1.4 1.4% H1 1 20 2013 H2 2 20 2013 H1 1 20 2014 H2 2 20 2014 H1 1 20 2015 H2 2 20 2015 General 2.8% 10.1% 14.6% 11.3% 6.7% 1.4% P&H (2.3)% 12.8% 7.4% (9.7)% (2.9)% (0.3)% Contracts 4.9% 8.5% 11.1% 12.4% 13.9% 3.6% Consumer (1.1)% 3.3% 6.8% 6.4% 6.5% 4.2% Li Like ke-for

  • r-li

like ke sa sales es 0. 0.9% 9% 9. 9.0% 0% 10 10.2 .2% 4.6 .6% 5.7% 5.7% 2. 2.0%

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

slide-35
SLIDE 35

Full ull-Year R r Results

  • ults. 20

2015 35 35

  • VI. Def

efinitio tions

Met Metric ic Def Defin initio 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

slide-36
SLIDE 36

Full ull-Year R r Results

  • ults. 20

2015 36 36

  • VI. Def

efinitio tions (c (conti tinued ed)

Met Metric ic Def Defin initio ion

Site visitors House Builders Federation Survey / monthly / December 2015 / Balance score compared to a year ago Site reservations House Builders Federation Survey / monthly / December 2015 / Balance score compared to a year ago Mortgage approvals Bank of England / monthly / January 2016 / number of approvals % change year on year Housing transactions HM Revenue & Customers / monthly / December 2015 / number of houses sold above £40k % change year on year Housing prices Nationwide / monthly / Jan 2016/ house price inflation % change year on year Consumer confidence GFK / monthly / January 2016/ index score – movement on previous year Climate for purchases GFK / monthly / January 2016 / index score – movement on previous year Equity withdrawal Bank of England / quarterly / Q3 2015 / Change in Equity withdrawal as % of net earnings Retail sales growth British Retail Consortium / monthly / Jan 2016 / LFL % change year on year Architect work load Mirza and Nacey Survey / quarterly / Q3 2015 / Index Construction output Construction output YTD ONS / monthly / December 2015 / % change year on year Trade confidence Travis Perkins survey materials spend / quarterly / Q4 2015 view of Q1 2016 / Balance score Expected workload Federation of Master Builders / quarterly / Q4 2015 view of Q1 2016 / Balance score New construction orders Office for National Statistics / quarterly / Q3 2015 / % change year on year

slide-37
SLIDE 37

Full ull-Year R r Results

  • ults. 20

2015 37 37

CO CONT NTACT CT.

invest stor.r .relat ations@t @travisp sperkins.c .co.u .uk Grae aeme B Bar arnes s | + +44 7 7469 69 401 01 819 9 grae aeme.b .bar arnes@t s@travisp sperkins.c .co.u .uk Matt tt Johns hnson n | + +44 758 7584 491 2 284 mat att.jo .johnson@travisp sperkins.c .co.u .uk

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