Victoria : 2021 Interim Results Presentation

Geoffrey Wilding, Executive Chairman

Philippe Hamers, Group Chief Executive

Mike Scott, Group Finance Director

Interim Results Presentation

for the six months ended 2 October 2021

"Victoria capitalised on its operational competitive advantages and balance sheet strength during the first half of FY22 to again deliver record trading results and value enhancing acquisitions in Italy, the Netherlands, and the USA, in a continuation of its mission to create wealth for shareholders."

H1 FY22 Results Overview

Executive summary

• Strong growth maintained
• Inflationary pressures successfully managed
• Value-enhancingacquisitions completed in Italy, Netherlands and USA

•	REVENUE: £489 million	•	OPERATING CASH FLOW3: £61.2 million
	‒ +60% vs H1 FY21		‒ 81% conversion from EBITDA
	‒ +30% like-for-like growth1
•	EBITDA2: £84.5 million	•	NET DEBT4: £519.3 million
	‒ Increase of £173.6 million from prior year-end due to
	‒ 17.3% margin		acquisitions (before translational FX movements)
	‒ +130bps LFL year-on-year increase
•	PBT2: £41.1 million, EPS2: 24.32p	• LEVERAGE4: 3.3x net debt / EBITDA
	‒ Small increase following cash-funded acquisitions
			during the period

‒ Consistent with the Group's stated financial policy

Note

1. Like-for-likerevenue growth shown on a constant-currency basis and adjusted to remove the impact of acquisitions and the additional week in the comparative period
2. EBITDA, PBT and EPS shown fully diluted, before exceptional and non-underlying items. All figures shown on a post- IFRS16 basis
3. Operating cash flow defined as underlying EBITDA, less non-cash items, less payments under right-of use lease obligations, plus movement in working capital. Free cash flow before acquisition, refinancing and other exceptional items
4. Net debt shown before right-of-use lease liabilities, bond issue premia, prepaid finance costs, and embedded notes redemption option. Leverage (Net debt / underlying EBITDA) consistent with the methodology used by our lending2banks

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H1 FY22 Results Overview

Segmental performance

		26 weeks ended 2 October 2021			27 weeks ended 3 October 2020
	UK &	UK &					UK &	UK &
	Europe -	Europe -	Australia	North	Central	TOTAL	Europe -	Europe -	Australia	Central	TOTAL
	soft	ceramic	America	costs	soft	ceramic	costs
£m
flooring	tiles					flooring	tiles
Revenue	214.0	182.5	53.4	39.1	-	489.0	126.0	132.5	47.0	-	305.5
% growth	+69.8%	+37.7%	+13.6%	-	-	+60.1%	-10.4%	+8.6%	-5.4%	-	-2.2%
Gross profit	75.7	64.2	17.3	16.1	-	173.4	40.8	47.0	14.5	-	102.3
% margin	35.4%	35.2%	32.4%	41.2%	-	35.5%	32.4%	35.5%	30.9%	-	33.5%
Underlying EBITDA1	38.6	37.4	7.1	2.6	(1.2)	84.5	19.2	27.7	6.2	(0.7)	52.4
% margin	18.0%	20.5%	13.3%	6.6%	-	17.3%	15.2%	20.9%	13.2%	-	17.2%
Underlying EBIT1	27.0	25.9	4.8	2.1	(1.2)	58.6	10.2	15.2	3.8	(1.0)	28.2
% margin	12.6%	14.2%	9.1%	5.4%	-	12.0%	8.1%	11.5%	8.1%	-	9.2%

Note

1. Figures presented are underlying and pre-exceptional items

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H1 FY22 Results Overview Revenue growth: +30% like-for-like

	26 weeks ended 2
	October 2021
Year-on-year revenue growth	H1 Total
Absolute
UK & Europe - soft flooring	+70%
UK & Europe - ceramic tiles	+40%
Australia	+14%
North America	-
Group total	+60%
Like-for-like1
UK & Europe - soft flooring	+48%
UK & Europe - ceramic tiles	+17%
Australia	+15%
North America	-
Group total	+30%

Note

1. Like-for-like revenues are shown on a constant-currency basis, after removing the impact of acquisitions, and adjusting for the additional week in the comparative period

2.

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H1 FY22 Results Overview

Margin improvement: +130bps like-for-like

	26 weeks ended 2
	October 2021
Underlying EBITDA margin	H1 Total
UK & Europe - soft flooring
EBITDA margin	18.0%
LFL margin variance to prior year1	+190bps
UK & Europe - ceramic tiles
EBITDA margin	20.5%
LFL margin variance to prior year1	+180bps
Australia
EBITDA margin	13.3%
LFL margin variance to prior year1	+10bps
North America
EBITDA margin	6.6%
LFL margin variance to prior year1	N/A
Group total
EBITDA margin	17.3%
LFL margin variance to prior year1	+130bps

Note

1. LFL margin variance shown after normalising the impact of acquisitions. Variances rounded to nearest 10bps

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