Online penetration remains low in our sector Estimated 3% of UK building products UK DIY & Gardening online penetration 2.5 9 market is online currently 7% 8 2.0 7 Online penetration (% of market) 6 Market size (£ billion) 1.5 5 4 1.0 3 2 0.5 1 0.0 0 2007 2009 2011 2013 2015 2017 2007 2009 2011 2013 2015 2017 Source: Conlumino, August 2013 Source: Conlumino, August 2013 Capital Markets Day – 3 December 2013 23
Staying ahead of changes in buying behaviour Consumer Merchants Contracts • Increasing price transparency Travis Wickes CPS, PTS, BSS, CCF, Toolstation Perkins & Tile Giant F&P, Spares Keyline Benchmarx • End-users challenging Tendered tradesmen on material prices quote / Fixed pricing Variable pricing framework agreements • Jobbing tradesmen able to Smaller better compare prices customers • Lightside and high-value Medium products customers • Large customers demanding Larger customers increasing levels of service & Customer sizes Small = 1-2 employees Medium = 2-15 employees value Large = 15+ employees Capital Markets Day – 3 December 2013 24
Significant structural opportunities for growth • Builders merchant sector £33bn addressable market + £11bn adjacent categories remains fragmented - >3,000 independent competitors Independents operating from 5,400 branches £14 billion 5,400 branches • Opportunity to expand into TP Adjacent categories £5 billion £11 billion 1,932 branches adjacent categories Nationals £14 billion 5,000 branches Source: TPK analysis Capital Markets Day – 3 December 2013 25
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 Capital Markets Day – 3 December 2013 26
Group value creation Tony Buffin, Finance Director Capital Markets Day – 3 December 2013 27
Long term, sustainable growth • Accelerate innovation of customer propositions • Expand network and intensify use of space • Exploit scale advantage • Prioritise investments throughout the portfolio Capital Markets Day – 3 December 2013 28
Levers of value creation Portfolio Scale management advantage Optimising • Streamlined • Supply chain network central functions Customer investment • TP expansion & • Devolved innovation • Leverage property modernisation management • Improved value capability responsibility • Wickes national • Group sourcing • Disciplined • Extended range footprint benefits planning & capital • Plumbing & Heating • Product allocation • Shared technology format clarity development • Regular market investment • Implants intensify • Format renewal updates returns • Technology enabled • Trade parks • Multi-channel Enabled through people & evolution of unique culture Capital Markets Day – 3 December 2013 29
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 Capital Markets Day – 3 December 2013 30
Evolving our portfolio model Streamlined Scale central economies functions Superior customer propositions Disciplined Devolved planning & management capital responsibility allocation Capital Markets Day – 3 December 2013 31
Evolving our portfolio model • More people in the businesses, fewer in Streamlined Scale the centre central economies functions - Closer to customers - Better decision-making Superior customer - Greater ownership propositions • Selective investment in shared services Disciplined Devolved planning & management capital responsibility allocation - Product innovation & sourcing - Distribution efficiency - Modernising heritage IT systems - Enterprise-wide network property planning Capital Markets Day – 3 December 2013 32
Evolving our portfolio model • Divisional structure Streamlined Scale central economies - Re-aligned to better reflect customers, markets functions & operations • Division CEOs Superior customer propositions - Increased responsibility Disciplined Devolved - Greater accountability planning & management capital responsibility allocation • Model to attract & retain best talent • Incentives aligned with shareholder interests Capital Markets Day – 3 December 2013 33
Re-aligning our divisional structure TP Group Executive Plumbing & General Contracts Consumer Merchanting Heating Capital Markets Day – 3 December 2013 34
Evolving our portfolio model • Competition for capital Streamlined Scale central economies functions • Tiered allocation of capital • Enhanced ROCE focus at division, Superior customer business & branch level propositions • Discipline in recycling capital Disciplined Devolved planning & management capital responsibility allocation Capital Markets Day – 3 December 2013 35
Deploying capital to attractive opportunities Extending Proven businesses, categories and formats delivering attractive returns 1 leadership Invest in our propositions to meet changing customer needs & stay Investing to grow 2 ahead of competition Restart infrastructure investment and re-engineer businesses to enable Re-engineering & 3 infrastructure build future outperformance Divestment Divest if better use of our capital Capital Markets Day – 3 December 2013 36
Capex step-up to maintain advantage 1,200 500 Acquisitions + capital expenditure (£m) • Maintain leading 400 positions Capital deployed to 300 • Exploit market £225m p.a. developments 200 £110m p.a. • Ensure long- 100 term competitive - advantage 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 Capex Other acquisitions Acquisition Interest in Associate Wickes acquisition Wickes BSS BSS acquisition Average Average (ex-Wickes / BSS) Source: Company data Capital Markets Day – 3 December 2013 37
Tiering 2014-15 capital to attractive investments.. LAROCE Capex(p.a) Extending Strong 20-30% £20-50m 1 leadership returns Good Investing to grow 15-20% £10-20m 2 returns Re-engineering & Range of £20-30m 3 0-30% infrastructure build returns Property 15-20% £20-40m Maintenance - £60-70m Group capex range £130-170m Capital Markets Day – 3 December 2013 38
…focussed on investments with good track record Maturity Examples • New TP / Wickes Extending Strong 3-5 years 1 • Toolstation implants leadership returns • New formats Good Investing to grow 4-6 years 2 returns • Regional DC • IT systems Re-engineering & Range of 3 - • Branch relocations infrastructure build returns Capital Markets Day – 3 December 2013 39
Evolving our portfolio model • Leveraged buying scale Streamlined Scale - Direct sourcing central economies functions - Volume benefits - Branded product development • Lower cost distribution Superior customer propositions - Volume enabling DC consolidation Disciplined Devolved planning & - Lower stock holding management capital responsibility allocation - Range extension & better availability - Vehicle utilisation • Property access - Covenant & availability of capital - Site aggregation Capital Markets Day – 3 December 2013 40
Evolving our portfolio model • Strong understanding of our Streamlined Scale central economies functions customers‟ needs in every business Superior • Continuous evolution of customer customer propositions proposition Disciplined Devolved planning & management capital responsibility allocation Capital Markets Day – 3 December 2013 41
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 Capital Markets Day – 3 December 2013 42
Division plans John Carter | Tony Buffin Capital Markets Day – 3 December 2013 43
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 Capital Markets Day – 3 December 2013 44
General Merchanting Clear market leader with significant opportunities for long term growth Capital Markets Day – 3 December 2013 45
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 operating margins Capital Markets Day – 3 December 2013 46
General Merchanting overview Strengths Developments / opportunities • • Market leader; 15% share Price transparency & consistency • Strong local customer • Fixed prices resonating with relationships tradesmen - Range breadth • Multi-channel development - Availability • Managed services & FM markets - Delivery developing • National branch network • Market remains fragmented - • Efficient lightside distribution large share with independents / capability regional • • Mid-sized customers increasing Scale buying & sourcing 645 TP branches 11.5% EBITA margin* advantages £1.5bn sales* 6,700 employees • Sector leading margins *Year ended 31 December 2012 Capital Markets Day – 3 December 2013 47
Travis Perkins strategy Expand the network Managed services Modernising development formats Sales & Profit drivers Toolhire expansion Enhanced CRM Category management Multi-channel & pricing development Enablers Enhanced IT Regional capability distribution Invest in safety & develop our people Capital Markets Day – 3 December 2013 48
Branch expansion & format modernisation • Significant scope for network Current Trial 2018 Branch model modernisation (“TP 2018”) expansion & relocation Improved customer service • 5-15 net new branches p.a. Pricing • Co-location on trade parks Range / layout • Benchmarx & Toolhire implants Merchandising • Progressive roll- out of “TP 2018” Operational standards branch modernisation programme Training & service • Strong returns from new & Marketing refurbished branches Efficiency Capital Markets Day – 3 December 2013 49
Multi-channel development Customer experience Infrastructure • Clean & functional • Branch to site delivery for heavyside Where we 1 • Passive • Branch collection only for lightside are now • Non-transactional • Branch acting as call centre • Heavyside distribution improvements • Transactional capability expanding range & availability • Integration to pricing systems 2 Next steps • Lightside range access from DCs • Account management • DC direct to site picking • Click & collect • Leading online gateway • Cross-channel fulfilment for lightside • Interactive & social hub • CRM and account management Where we 3 • Seamless experience across channels systems development will get to • Contact centre coordination • Integrated CRM Capital Markets Day – 3 December 2013 50
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 Capital Markets Day – 3 December 2013 51
General Merchanting ambition • Outperformance through: Medium-term Current Measure Ambition - Local customer relationships 645 TP 5-15 net new - Consistent range and range extension Network expansion branches branches p.a. - Better availability Like-for-like sales - Sourcing & own label development 0-5% 1-4% growth outperformance - Product knowledge and easy to transact Operating margin Sector Sustain - Format improvements improvement prospects leading - Network & multi-channel development £40-60m Capital expenditure £44m* p.a. - Managed services expansion Lease adjusted Add 200- - 300bps ROCE *Year ended 31 December 2012 Capital Markets Day – 3 December 2013 52
Plumbing & Heating Strong market position with compelling investment options Capital Markets Day – 3 December 2013 53
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 Capital Markets Day – 3 December 2013 54
Plumbing & Heating overview Strengths Market developments / opportunities • Nationwide branch network • Heating recovery, bathroom slower • Diverse customer base • Price transparency online (contracts, plumbers & bathroom installers) • Continued concentration & • Deep knowledge of upstream strength in manufacturer base supply & downstream usage • Intense competitor activity • Improving direct sourcing • Spares market potential capability & own label development 525 branches 4.5% EBITA margin* • Strong showroom format £1.3bn sales* 3,700 employees (Endeavour) *Year ended 31 December 2012 Capital Markets Day – 3 December 2013 55
Plumbing & Heating strategy Division-wide property planning Develop contract More standalone business CPS branches Sales & Profit drivers Supply chain Better pricing tools efficiencies Roll-out of Tailored multi- Endeavour & spares channel capability Enablers Talent to lead UK‟s Stay Safe #1 P&H business Excellent IT Capital Markets Day – 3 December 2013 56
Endeavour showrooms • 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 Capital Markets Day – 3 December 2013 57
Multi-channel development • Exploiting PlumbNation acquisition • Development of multi-channel proposition: - Ordering capability - Product information tools - Extended range - Account management - Remote fulfilment Capital Markets Day – 3 December 2013 58
Plumbing & Heating ambition • Outperformance through: Medium-term Current Measure Ambition - Clarity of contracts and installer propositions 525 ~10 net new Network expansion branches branches p.a. - Enhanced branch pricing tools - Sourcing & own label development Like-for-like sales 0-3% 0-3% growth outperformance - Spares implants Operating margin - Good - CPS network expansion improvement prospects - Endeavour showroom rollout £10-20m Capital expenditure £11m* p.a. - Multi-channel establishment Lease adjusted Add 150- - - Sustainable solutions growth 250bps ROCE *Year ended 31 December Capital Markets Day – 3 December 2013 59
Contracts Business in leading position well placed to exploit market trends Capital Markets Day – 3 December 2013 60
Contracts growth levers • Category & product extension • Improved service, technical expertise & procurement solutions • Network optimisation Capital Markets Day – 3 December 2013 61
Contracts overview Strengths Market developments / opportunities • Strong market position • Greater service level demands - BSS #1 • Customer seeking single - CCF #2 contact points - Keyline #1 • Offsite fabrication • Deep specialist sector • Pricing and credit pressures knowledge & technical from main contractors expertise • Attractive category & customer • Strong customer relationships adjacencies • Range breadth in business 181 branches 5.2% EBITA margin* • Access to group range £0.9bn sales* 2,600 employees *Year ended 31 December 2012 Capital Markets Day – 3 December 2013 62
Contracts strategy Growth in insulation Develop BSS Major presence in Industrial offer partitions Sales & Profit drivers Contract pricing & Category expansion project management Whole Contracts Division Deepen sector & Branch network category specialism expansion Enablers Multi-channel Excellent IT capability Market-leading customer service Capital Markets Day – 3 December 2013 63
Category expansion Launch of Sektor (interior Strengthen technical expertise & Highways specialism and national solutions) & dedicated technical coverage for Rail / Utilities extend industrial product range partition sales team Dedicated sales & technical Trial Centres of Excellence with Expanded Product Range & new insulation team & expanded suppliers additional industrial specialists insulation product range Procurement solutions for key New customers acquisition and New customers acquisition and accounts share of wallet expansion share of wallet expansion Capital Markets Day – 3 December 2013 64
Contracts division ambition • Outperformance through: Medium-term Current Measure Ambition - Deeper product knowledge and 181 1-2% net customer service Network expansion branches space growth - Extended ranges Like-for-like sales 0-3% 1-3% - Selective network expansion growth outperformance Operating margin - Category expansion - Good improvement prospects - Sourcing & own label development £10-20m Capital expenditure £12m* p.a. Lease adjusted Add 200- - 300bps ROCE growth *Year ended 31 December 2012 for Specialist division Capital Markets Day – 3 December 2013 65
Consumer Well positioned businesses with attractive expansion opportunities Capital Markets Day – 3 December 2013 66
Consumer growth levers • Enhance Wickes proposition to tradesmen & serious „ DIYers ‟ • Full nationwide Wickes footprint • Toolstation network expansion • Continued multi-channel development Capital Markets Day – 3 December 2013 67
Consumer overview Strengths Market developments / opportunities • Differentiated tradesman & • DIY market recovering slowly serious DIY proposition • Fixed prices resonate with • Strong brand awareness tradesmen • Nationwide delivery capability • Brands vital to credible trade offer • UK wide kitchen & bathroom • Lightside only operators installer network • Multi-channel penetration greater • Growing multichannel than trade only market presence • Strong marginal returns from 227 Wickes / 108 TG £1.3bn sales* new stores 5.6% EBITA margin* 7,300 employees *Year ended 31 December 2012 (including Toolstation) Capital Markets Day – 3 December 2013 68
Wickes strategy Enhanced customer proposition Better value for Convenient in Tradesmen any channel Sales & Profit drivers Right stores, LFL growth from in the right place drive categories More efficient More efficient distribution buying Enablers Great engaged Smarter Support Smarter working people delivering stores Capital Markets Day – 3 December 2013 69
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 Capital Markets Day – 3 December 2013 70
Better value for tradesmen • 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 Capital Markets Day – 3 December 2013 71
Toolstation Fast growing business with superior customer proposition Capital Markets Day – 3 December 2013 72
Toolstation overview Strengths Market developments / opportunities • Market leading proposition • Price transparency - Fixed, low prices • Fixed prices resonating with - Excellent availability tradesmen - Branded and entry products • Multi-channel development • Multichannel platform • Tradesmen responding to - Efficient stocking model better availability - Consistent range in all channels • • Strong branch returns Promiscuity between competitors and channels • Significant scope for expansion 143 branches in UK 5 branches in Netherlands 1,300 employees Capital Markets Day – 3 December 2013 73
Flexible multi-channel model Find Product Order Product Receive Product • >11,000 SKUs • Order any channel • Collect any channel • 7 days a week Capital Markets Day – 3 December 2013 74
Toolstation strategy • Keep operating model simple • Expand network by ~100 branches • Scale distribution capability • Target Wickes implants to best opportunities • Refine operating model efficiency • Trial use of operating model in other businesses • Continue Europe trial Capital Markets Day – 3 December 2013 75
Consumer division ambition • Outperformance through: Medium-term Current Measure Ambition - Clearer and sharper pricing 227 Wickes 5-10 net new p.a. - Catalogue and online range extension Network expansion 108 TG Implants 143 TS ~20 p.a. - Improved availability in Wickes Like-for-like sales Above Flat growth outperformance market - Format renewal and network expansion Operating margin - Good - Toolstation expansion & implants improvement prospects £30-40m - Tile Giant implants only Capital expenditure £18m* p.a. - Driving multichannel harder Lease adjusted Add 150- - 250bps ROCE *Year ended 31 December 2012 Capital Markets Day – 3 December 2013 76
Streamlined shared services Tony Buffin Capital Markets Day – 3 December 2013 77
Retaining shared services with scale benefit TP Group Executive General Plumbing & Contracts Consumer Merchanting Heating Supply Chain – distribution efficiency Commercial – product innovation & sourcing IT – modernising heritage systems Property – enterprise wide network planning HR & Finance Capital Markets Day – 3 December 2013 78
Easier supply of product Easy Fast & Optimised Ordering Efficient Local • Virtually extending • Better range • Optimisation of 3,200 yards & branches via: availability / stock vehicle fleet accuracy • Route planning tools - Consolidating light • Further automation of goods warehouses • On time in full solution branch replenishment - Bulky goods • Lower stockholding network • Better range • DC efficiency management tools programmes • More time for customers Capital Markets Day – 3 December 2013 79
Optimising our distribution network Current Future Size Size Warehouse type # DCs # DCs (000 sq ft) (000 sq ft) Merchant PDC 5 940 2 1,300 • Centralising core lightside Retail PDC 4 810 3 690 RDC 1 85 7 770 • Extending heavyside range & availability Timber 5 30.5 acres 2 12.5 acres • New capacity Toolstation 3 340 3 340 • Other consolidation Other 4 470 2 270 22 19 Capital Markets Day – 3 December 2013 80
Doubling own branded sales • Further investment in innovation Own / exclusive centre • Consolidated buying • LCC direct sourcing capability • Own brand development in Wickes • Exclusive house brands Third-party • New product development sold beyond Travis Perkins Capital Markets Day – 3 December 2013 81
Increased IT investment Investing for the future Re-engineering & Infrastructure • Mobile web offer • Core platforms at end of life • Delivery on-time & in-full • Build infrastructure for growth Investment • Expert source for product • Network upgrade Theme information • Stock management • Account services • Wickes • Merchant businesses Business • Travis Perkins • Supply Chain Focus • Plumbing & Heating • New organisation • Target heritage systems • Wider and deeper capability Approach • Build & Buy • „Agile‟ development approach • Open source Capital Markets Day – 3 December 2013 82
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 Capital Markets Day – 3 December 2013 83
… resulting in evolved freehold mix • Travis Perkins more reliant on expensive property leases than peer group • Strategic ambition to increase freehold mix: Leasehold 2 60% - secure strategically important sites Leasehold 2 85% - value creation through redevelopment - source of stored value - often lower cost over long-term Freehold 1 • Freehold mix dependent on: 40% Freehold 1 - opportunities for securing sites 15% - availability of on-balance sheet financing 3 Peer composite Travis Perkins 1. Book value of debt - relative freehold/leasehold value 2. 8 times operating lease rentals 3. Peer composite includes Kingfisher, SIG, Grafton, Wolseley Capital Markets Day – 3 December 2013 84
Capital management Tony Buffin Capital Markets Day – 3 December 2013 85
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 Capital Markets Day – 3 December 2013 86
On- balance sheet debt reduction… …but „real‟ leverage reduction modest On Balance Sheet 1,500 1,000 UK syndicated loan 500 0 US guaranteed senior notes Off Balance Sheet (500) Unsecured loan notes (1,000) Operating lease rentals (capitalised at 8x) (1,500) (2,000) Dec 08 Dec 09 Dec 10 Dec 11 Dec 12 Dec 13E LA debt 1 £1,928m £1,816m £1,813m £1,877m £1,907m ~£1,850m Gearing 2 65% 55% 48% 47% 45% 43% 1. Lease adjusted (balance sheet debt + 8x rentals) 2. Ratio of lease adjusted debt to equity plus LA Debt Fixed charge 2.3x 2.4x 2.6x 2.8x 2.6x ~3.0x cover 3 3. Ratio of EBITDA plus rentals to interest plus rentals Capital Markets Day – 3 December 2013 87
Capital structure & investment priorities US notes - £0.1b • Invest in growth UK Bank Debt - £0.4b capex Key ratios Property Leases • Working capital £1.4bn Gearing 1 43% funding £4.4bn • Progressive Fixed charge cover 2 ~3.0x dividend policy Equity £2.5bn LA Debt : EBITDAR 3 ~3.0x • Property & infill acquisitions December 2013E 1. Ratio of lease adjusted debt to equity plus lease adjusted debt Dec-12 capital structure 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 Capital Markets Day – 3 December 2013 88
Debt maturity profile January 2016 US notes - £0.1bn • No immediate need to UK Bank Debt - £0.4bn December 2016 refinance existing facilities • Diversify debt funding sources over next 12-24 months Weighted average Property Leases lease expiry of £1.4bn • Property leases likely to be ~10.5 years smaller component of financing mix in future, but December 2013E will remain Dec-12 lease adjusted debt position Capital Markets Day – 3 December 2013 89
Capital management targets • Ambition to achieve targets Current 1 Target 2 Measure over the next 3 years • Achieve targets through Fixed charge cover 3 ~3.0x 3.5x earnings increases • Limited deleveraging for 12-24 LA Debt : EBITDAR 4 ~3.0x 2.5x months given: 2.50x – 3.25x Dividend cover 5 ~3.4x 1. Value additive investment plans 2. Expected growth in working capital 3. Dividend progression 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) Capital Markets Day – 3 December 2013 90
Our growth ambition John Carter Capital Markets Day – 3 December 2013 91
Expansion of each of our businesses General Plumbing & Contracts Consumer Merchanting Heating • Network expansion • CPS expansion • Deeper category • Create national & modernisation management coverage • Network • Managed services • Reinvigorate - Insulation coordination Wickes proposition • Toolhire expansion • Spares & - Partitions • Toolstation - Industrial showroom rollout • Multi-channel expansion • Supply chain - Civils investment • Intensified use of • Multi-channel efficiency • CRM development Wickes space: • Multi-channel development • Category & pricing • Network growth - Toolstation • Pricing management - Tile Giant • Contract pricing management Capital Markets Day – 3 December 2013 92
Levers of value creation Portfolio Scale management advantage Optimising • Streamlined • Supply chain network central functions Customer investment • TP expansion & • Devolved innovation • Leverage property modernisation management • Improved value capability responsibility • Wickes national • Group sourcing • Disciplined • Extended range footprint benefits planning & capital • Plumbing & Heating • Product allocation • Shared technology format clarity development • Regular market investment • Implants intensify • Format renewal updates returns • Technology enabled • Trade parks • Multi-channel Enabled through people & evolution of unique culture Capital Markets Day – 3 December 2013 93
Long term, sustainable growth • Accelerate innovation of customer propositions • Expand network and intensify use of space • Exploit scale advantage • Prioritise investments throughout the portfolio Capital Markets Day – 3 December 2013 94
Welcome Leveraging our position as the largest supplier of building materials in the UK Capital Markets Day – 3 December 2013 95
Questions John Carter | Tony Buffin | Division Management Capital Markets Day – 3 December 2013 96
Appendices i) Executive Biographies | ii) Division revenue reconciliation | iii) Branch numbers Capital Markets Day – 3 December 2013 97
i) Executive biographies • • Appointed as a Travis Perkins regional Joined Sandell Perkins as a management managing director in 2005. trainee in 1978. • • Joined the executive committee in 2009. Held a variety of management positions before being appointed Managing • Retail experience with Wickes, Somerfield Director, Operations in 1996. and The Big Food Group. • Became Chief Operating Officer in February 2005 and was appointed Deputy John Carter Norman Bell Chief Executive in December 2011. Chief Executive Group Strategy & IT Director • Appointed Finance Director in April 2013. • Joined Travis Perkins in 2006 as Group • Chartered accountant and previously HR Director. Chief Financial Officer for Coles Group in • Held various HR director roles Argos, Australia from 2009. Safeway Food Stores, Ladbroke Group • Prior to Coles; CFO and CEO of Aimia Inc and Storehouse Group plc. Europe. • Previously non-executive director of • Previously financial controller of Boots Leeds Building Society. Tony Buffin Group. Carol Kavanagh Finance Director HR Director Capital Markets Day – 3 December 2013 98
i) Executive biographies • • Joined Travis Perkins as Group supply Joined Wickes in 2002 as a Buying chain director in 2006. Manager. • • Awarded Retail Week Supply Chain Progressed to Wickes Buying Director Leader of the Year in 2012. in 2007. • • Previously executive board member of Became Group Commercial Director in Howdens, MFI and various roles for 2011, before joining the executive Sainsbury‟s and Iceland Foods. committee in 2013. Ian Preedy Robin Proctor Group Commercial Group Supply Director Chain Director • Joined Travis Perkins in 2005 as Group • Joining the group in 2014 as Company Property Director. Secretary and General Counsel. • Fellow of Royal Institution of Chartered • Currently Company Secretary and Surveyors. General Counsel at Lafarge Tarmac. • Formerly MD property Dixons Group plc • Previous experience at Nokia and BOC and non-executive director of Quintain Edwards. Estates & Development plc. • Deborah Grimason Martin Meech Chairman of BRC Property Committee. General Counsel Group Property Director Capital Markets Day – 3 December 2013 99
i) Executive biographies • • Joined BSS Industrial in 2003 as Joined Travis Perkins in 2012. commercial director and promoted to • Previously Deputy CEO of Northgate managing director in 2005. plc, president of Newark inOne service • Prior to the Travis Perkins acquisition in Inc and various roles at Premier Farnell 2010 promoted to BSS Group board in plc. 2009. • Previously worked for Newey & Eyre Paul Tallentire Frank Elkins and Hagemeyer in various operational CEO Plumbing & CEO Contracts roles. Heating • • Started with Keyline Builders Merchants Joined as Wickes Managing Director in in 1977 becoming finance and 2012. commercial Director. • Previously Chief Operating Officer for • Became managing director of Keyline Asda, CEO of Tesco, South Korea and after acquisition by Travis Perkins. worked for Tesco in Czech Republic and Slovakia. • Most recently led CCF, Keyline and • Benchmarx businesses. Also worked for Tarmac and Safeway in Simon King Arthur Davidson various roles. MD Wickes CEO General Merchanting Capital Markets Day – 3 December 2013 100
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