Trian Partners Activist Presentation Deck
Why is Ferguson Mispriced? Ferguson's North American Business is
Structurally More Attractive than its UK Business but It Trades in the UK
Better
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structure
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Better
economics
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Better
Results
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Ferguson Brand(1)
Ferguson Market Share
Distribution Hourglass
Revenue / Branch
Gross Margins(²)
Cumulative Organic
Growth (5 Years)(³)
EBITA Growth (5 Years) (3)
North America Market
(95% FY 19 EBITDA)
FERGUSONⓇ
Clear #1... Highly
fragmented
Attractive...Fragmented
supplier and customer base
$11.5mm
30%
+37%
+68%
United Kingdom Market
(5% of FY 19 EBITDA)
W
WOLSELEY
4 Players b/w $2bn - $3bn
revenue...consolidated
Less attractive...Large boiler
market and more
concentrated customer base
$4.1mm
22%
+4%
-59%
Source: Company filings, investor presentations.
(1) Ferguson US is ~95% of North America EBITDA (Canada is the other 5%). Ferguson is the go-to-market brand in the US and Wolseley is the go-to-market brand in Canada.
(2) Assumes Canada earns same gross margin as US business.
(3) Represents US market only as Canada was formerly part of a segment that included Ferguson's divested Wasco division. UK organic sales growth presented on a "like-for-
like" basis to remove the impact of closed branches and the exit of low margin business.
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