Travis Perkins Plc

Analysts and Investors

Site Visits

5 July 2005
Programme

Brief Presentations HSBC 1130

Wickes Extra Barking 1330
Travis Perkins Rainham 1445
CCF East London 1600
Arrive HSBC 1730 latest
Presentations

Introduction Geoff Cooper

Paul Hampden Smith

TP trading companies John Carter

Wickes Richard Bird

Introduction

Trading Statement July 4, 2005

Buying gains and other synergy developments
on track
Brownfield and acquisition progress on track to
exceed 2004
Management re-organised and strengthened
Synergy Progress
All TP : Wickes product catalogues matched
67% overlap
comprehensive database and enquiry routines
implemented
Negotiation strategies developed and applied
pilot results ahead of forecast
Detailed negotiations underway April October
Lower volumes but hungrier suppliers
No significant DIY market price pressure
Cost inflation : price inflation ratio in
merchanting remains positive
Non-goods-for-resale gains progressing well
Brownfields & acquisitions
on track to exceed 2004
Merchant capacity expanding by estimated 4%
p.a. (mainly P&H)
TP rate of branch expansion 10%
DIY capacity expanding by 5.6% p.a.
Wickes 3 year expansion programme adds 5%
new stores per year
3,000+ independent merchants vendor
interest high
Presentations

Introduction Geoff Cooper

Paul Hampden Smith

TP trading companies John Carter

Wickes Richard Bird

Travis Perkins plc
Branch visits, 5 July 2005 Barking
Store details Store features
Date opened: February 2003 Goods handling there are 4 forklifts operating
Type of branch: Wickes Extra in the store, generally used in the inward
Region: South East deliveries and storage areas.
Store Manager: Dean Hussein Delivery capabilities the store is able to
11 years with Wickes receive incoming deliveries daily between 8am
5 years as manager and 11pm
Number of staff: 95 Security the store is a 60,000 square foot unit,
including a 9,000 sq.ft. Outdoor Projects area. It
Store background has a CCTV system operating within store and
The Barking branch opened in 1999 and was security guard cover for 118 hours per week.
converted into a Wickes Extra in February 2003. Wickes Barking store entrance
Following the conversion to the Wickes Extra
Product portfolio
format, the average number of transactions per The store stocks approximately 7,000 Stock
week achieved by the store increased by some Keeping Units. This includes some 1,800 new Customer profile
81%, with the average spend for each transaction lines which the store is able to hold as a result of We regularly carry out surveys of our customers
increasing by 31%. This increase is despite the the conversion to the Wickes Extra format, plus via questionnaires they are asked to fill out on
arrival of competition from Selco and Platform 250 to order products. leaving the store. As a result we are able to
(Jewson) in Barking. understand our customers better, and tailor our
The largest selling product ranges are kitchens
and tiles, each accounting for in excess of 1m offering to suit local demand.
Sales performance sales per year. Other major product groups are The store has strong links with local tradesmen,
Sales for the 5 months to May 2005 are 8% ahead flooring, plaster, doors and paint. with Trade related sales accounting for
of the equivalent period in 2004. approximately 35% of turnover.
Capital investment
Monthly branch external customer sales
Total capital expenditure on the conversion to the Local market & competition
Wickes Extra format was 1.5m Local DIY retail competition includes Selco and
The Barking site is secured on a long term lease Platform (Jewson), although there are no other
expiring in February 2028. DIY sheds in Barking.
Wickes Barking serves a catchment population of
Customer services some 400,000, which by our own estimations
equates to a market size of 167m.
All staff apart from the warehouse team
(approximately 5 people) work in customer-facing
Jun Sep Dec Mar May roles, including at least 3 on the customer service
desk at any one time.
2003/04 2004/05
Travis Perkins plc
Branch visits, 5 July 2005 Rainham
Branch details Branch features
Date opened: March 1989 Goods handling 3 forklifts operate in the yard
Type of branch: Mixed and warehouse. All yard staff are trained in their
Region: TP South East safe use.
Manager: Vincent Murdoch Delivery capabilities the branch operates two
16 years with TP, of which 18 tonne crane lorries, one 7.5 tonne flat bed lorry
have been as a manager and one tool hire transit van.
Number of staff: 22
Security the branch stands on a 2.15 acre
Branch background secure site and is completely enclosed with
palisade fencing. There is a CCTV system
The Rainham branch opened in March 1989 as operating within the yard and warehouse, and also
part of the acquisition of Modern Homes Limited. has a security officer on the gate checking all
Since that date and with a well controlled plan of customers out of the site. Travis Perkins Rainham yard
investment, the financial results have exceeded
our expectations. Product portfolio Customer profile
The branch was awarded South East Branch of
Rainham is a mixed branch which holds one of the Rainham targets house builders, local jobbing
the Year in 2000.
largest stock ranges in the area, with Heavyside builders and professional DIY customers. The
Sales performance being the most prominent. This enables the branch does a significant amount of retail and
branch to serve all levels of customers from small cash business and serves a strong repair,
Sales for the 5 months to May 2005 are 3% retail purchases to large house builders. maintenance and improvement market.
behind the same period in 2004, although
delivered sales are ahead of both last year and Marshalls products are a major feature of this Customer services
plan, and direct to site sales also exceed levels branch with a large landscaping display in place.
achieved in 2004. There are 11 staff based in the shop area. Each
The high standard and broad range of displays in of them, including the Manager, will serve
the shop and particularly in the Plumbing and customers over the counter as required as well as
Monthly branch external customer sales Heating area sets it apart from the majority of the helping to load customers vehicles, take
independent competition. telephone orders and provide advice.

Capital investment Local market & competition

We have recently redeveloped the warehouse, The main competitors include Selco & Platform
P&H department and the decorating centre and (Jewson), based in Barking, Nichols & Clark
renovated the shop, at a total cost of 100,000. (Dagenham) and B&Q (Romford). There are also
two small cash sales-orientated independent
The Rainham site is secured on a long term lease
Jun Sep Dec Mar May
merchants based in Rainham.
expiring in December 2013.
2003/04 2004/05
Travis Perkins plc
Branch visits, 5 July 2005 East London
Branch details Branch features
Date opened: 2001 at the current site Stock systems most orders are taken by
telephone for next-day delivery so the business
Type of branch: Large warehouse & yard requires highly responsive stock management and
Region: CCF stocks a full range of products.
Manager: Russ Pittingale - 4 years Goods handling there are 5 forklifts operating
with CCF including 1 as within the 30,000 sq.ft. warehouse and yard.
manager at East London.
Previously manager at Delivery capabilities 7 x 26 tonne and 2 smaller
CCF Heathrow lorries operate from East London. The nature of
the products require Moffet forklift offload at the
Number of staff: 29
delivery location. 5 of the lorries have such
Moffet, or piggy-back forklifts attached to make
Branch background loading and unloading more efficient.
CCF East London warehouse
CCF London traded from a site in Finsbury Park
for many years and in 1985 the business was Product portfolio Customer profile
moved to Silvertown. The branch moved to its
East London stocks the full range of CCF
current East London location in 2001. The customer base consists predominantly of sub-
products, the main categories being drylining
contractors of a client or main contractor on major
Sales performance (70% of sales), ceilings (16%), insulation (6%) and
development projects.
partitions (6%).
External customer sales for the 5 months to May Recent projects supplied from East London
2005 are 23% ahead of the same 5 months of Capital investment include Romford Hospital, Lords Cricket Ground,
2004. In addition, CCF East London now also and the Albion Riverside Development.
internally serves 25 Travis Perkins and Keyline Recent investment in fencing and racking in the
yard has liberated space for storage of additional
branches with their ceilings and drylining (etc)
products in the warehouse, particularly insulation.
Customer services
purchases.
Much of the improvement in sales performance The style of business is different to a builders
Monthly branch external customer sales
can be attributed to the branch now being able to merchant, with 95% of sales on credit and over
stock a greater range and depth of products. 75% delivered. The branch also exports products
throughout Europe.
The property is secured on a long term lease
expiring in March 2027.
Local market & competition
The branch delivers mainly to new build and
refurbishment projects in the Greater London and
Essex area, covering all sectors of the market
Jun Sep Dec Mar May (including the commercial, retail, schools,
2003/04 2004/05 residential and health sectors).
 TP & Wickes strategic proposition
Helpful
Customer Helpful
Service & Customer
Advice Service

Consistent Full
Convenient Fast
Stock Availability
Shopping Shopping
Availability
The reliable The trusted
brand for brand for
the Trade Home
Improvement
High
Quality Problem Own High
Product Solving Brand Space
Offer Only Utilisation

Value
Low
for
Prices
Money
Presentations

Introduction Geoff Cooper

Paul Hampden Smith

TP trading companies John Carter

Wickes Richard Bird

Wickes Dimensions

Locations Logistics Head Office Employees

DISTRIBUTION
DISTRIBUTION
CENTRE
CENTRE
6300 colleagues incl.
400 at Harrow
Experienced
DISTRIBUTION
DISTRIBUTION
CENTRE
Management Team
CENTRE
Trading Board average
Harrow 12 years experience
Harrow
DISTRIBUTION
DISTRIBUTION in RMI market
CENTRE
CENTRE Store Managers average
10 years LOS

HOME Support Centre

HOME DELIVERY
DELIVERY
CENTRE
CENTRE 48000 ft
Established 1978
172 stores (including 4 Network of IWs New building 1988
Extras) 63% of products,
Sales per sq ft: 209 in 2004 supplier backhaul,
Strong presence in the South EDI, consignment
Stores in large urban stock
locations Home delivery for
40 New stores in last 3 years showroom.
50% growth in space Transport & warehousing
outsourced
 Unique Brand

Key Financials Customer Products

Sales 2004 :911m Convenience DIY Showroom

15% 17%
Operating Profit :75m
Trade
3 yr CAGR Sales :12% 35% Trade
Female 45%
3 yr CAGR Operating Profit :17%
Specifie
r DIY &
High Stockturns : 7.9x
20% Gardenin
Share of UK RMI Market : 3% Serious g
DIYer 38%
30%

Target 6,000/8,000 SKU

SKUs
customers: 98% Wickes own
Small brand. Strong in
tradesmen heavy end &
Serious DIYer showroom
Female purchases
specifiers
Strategic Proposition - Wickes
Low No Reliable
Store to-order Information Delivery
Costs Products Service

Booklet Helpful
Customer
Service

Ease of Full
Shopping Focused Availability
Range

Brand
Bullseye Convenient
Low location
Central
Single Costs
Format
Own High Smallest
Brand Space Stores

Only Utilisation

Efficient
Market Low Supply
Leader Chain
Quality
Prices
High
Stock
Turn

Productive
Handling
Wickes delivering growth
EXPANSION

Potential for 300 stores

New Standards
New Extras
Relocations - Standards to Extras
4 year objective in excess of 200
Wickes delivering growth
DEVELOPMENT

Renewal Programme
Space optimisation
Space Race
Range improvements
Showroom Management Systems
Further format development
Wickes delivering growth
OTHER

Installation Service
Customer 1st Programme
E Commerce
Productivity & Labour Scheduling
Travis Perkins Plc

Analysts and Investors

Site Visits

5 July 2005