FULL YEAR RESULTS . 2017 Full Year Results . 2017 111 Agenda

Chairman’s introduction Stuart Chambers p3

Financial review Alan Williams p4

Operational update John Carter p19

Plumbing & Heating and Toolstation Tony Buffin p25

Appendices p32

Full Year Results . 2017 222 INTRODUCTION ...

STUART CHAMBERS Full Year Results . 2017 STUART CHAMBERS Full Year Results . 2017 3 33 FINANCIAL REVIEW ...

ALAN WILLIAMS Full Year Results . 2017 444 Introduction

Challenging market • Secondary housing transactions broadly unchanged from 2016 levels • Input cost inflation elevated – driven by FX and commodity prices • Consumer confidence declined steadily through the course of 2017

2017 performance • Input cost inflation largely offset through price activity • Investment in customer propositions, IT and digital • Cash generation remained strong

2018 outlook • Anticipate market conditions will remain mixed • Focus on trading execution and actions to drive efficiency and control cost • Selective capital investment aligned to key priorities - reducing year-on-year

Full Year Results . 2017 555 Key financial highlights

Year-Year-on--on-onon-year--year Year eendednded 3131 DecemberDecember FY 2017 FY 2016 change Revenue £6,433m £6,217m 3.5% LikeLike----forforforfor----likelikelikelikesales growth 3.3% 2.7% 0.6ppt Adjusted EBITA £380m £409m (7.1)% Adjusted EBITA excluding property profits £351m £392m (10.5)% Adjusted earnings per share 110.4p 120.4p (8.3)% Net debt £(342)m £(378)m £36m Dividends per share 46.0p 45.0p 2.2% Lease adjusted ROCE 10.1% 10.9% (80)bps

Strong cash flow leading to continued reduction in net debt

Full Year Results . 2017 666 Successful recovery of input cost inflation

Group revenue growth £6,433m • Like-for-like sales growth of £36m £(25)m £217m 3.3% £6,217m • £(12)m Volume flat, price up 3.5% as 3.5% input cost inflation was

2016 Volume Price / mix Net new Trading 2017 recovered space* days • LFL Q1Q1Q1Q2Q2Q2 H1H1H1 Q3Q3Q3 Q4Q4Q4 H2H2H2 FYFYFY Toolstation and Benchmarx 2015 5.1% 6.3% 5.7% 2.6% 1.4% 2.0% 3.8% network expansion continued 2016 4.2% 2.3% 3.1% 2.0% 2.5% 2.2% 2.7% 2017 2.7% 2.7% 2.7% 4.1% 3.2% 3.7% 3.3% • Improving like-for-like trend in 2yr LFL Q1Q1Q1Q2Q2Q2 H1H1H1 Q3Q3Q3 Q4Q4Q4 H2H2H2 FYFYFY 2016 9.5% 8.7% 9.0% 4.7% 3.9% 4.2% 6.6% H2, also reflected in 2-year like- 2017 7.0% 5.1% 5.9% 6.2% 5.8% 6.0% 6.1% for-likes *Net new space includes acquisitions

Full Year Results . 2017 777 EBITA reflects investment in future growth

of which: Network expansion £(23)m £54m Customer proposition improvement £(14)m Inflation on rent, rates, wages £(20)m Depreciation £(10)m £(78)m Other £(11)m £409m £(17)m £392m £29m £380m £(17)m £351m

2016 adjusted 2016 property 2016 EBITAEBITA Gross profit Operating cost Unallocated 2017 EBITAEBITA 2017 property 2017 adjusted EBITA profits (ex. property)Property) growth growth central cost (ex.(ex. property)Property) profits EBITA growth

Full Year Results . 2017 888 Group investments impacting EBITA margins

General Plumbing & Contracts Consumer Group Merchanting Heating FY 2016 adjusted operating margin 9.3% 2.6% 6.0% 6.7%6.3% (excluding property profits) Change in gross margin (0.2)% (0.8)% 0.6% (0.3)% (0.2)% Margin impact of change in operating costs (0.4)% 0.5% (0.3)% (1.2)%(((0.6)% (0.6)% FY 2017 adjusted operating margin 8.7% 2.3% 6.3% 5.2% 5.5% (excluding property profits) • Gross margins 40bps lower in H2 (H1 flat) • Operating cost increase includes: • Weak K&B Q4 performance in Wickes • Extension of range centre coverage • Selective price investment in GM • Increased digital investment • Mix of sales in Plumbing & Heating • Higher payroll, rent, rates and depreciation

Full Year Results . 2017 999 General Merchanting –––inflation recovered

Year ended 31 December 2017 2016 ∆∆∆ • Improving trend on like-for-like growth Revenue £2,109m £2,073m 1.7% through 2017 Like-for-like growth 1.2% 1.7% (0.5)ppt • Gross margin reduced by 20bps: Adjusted EBITA exexex- ex --- £183m £193m (5.2)% • H1 – recovery of cost inflation (flat) property profits • Underlying EBITA margin 8.7% 9.3% (60)bps H2 – selective category (1)ppt(1)ppt investments (down 50bps) Lease adjusted ROCE 14%14%14% 15%15%15% (1)(1)ppt • Branch network 850 833 17 Making investments to drive growth, including extending range centre coverage and digital capability • Actions taken to reduce cost and set up 2018 performance

Full Year Results . 2017 101010 Plumbing & Heating –––growing confidence

Year ended 31 December 2017 2016 ∆∆∆ • Significant step up in like-for- Revenue £1,366m £1,359m 0.5% like sales growth to 5.8% in H2 Like-for-like growth 2.1% (1.6)% 3.7ppt • Profit returned to growth in H2 Adjusted EBITA exexex- ex --- £31m £36m (13.9)% property profits • Rapid execution of Underlying EBITA margin 2.3% 2.6% (30)pps transformation plan: 1ppt Lease adjusted ROCE 11%11%11% 10% 1ppt • Proposition improvements Branch network 391 436 (45) • 46 branches closed • Substantial cost reductions • Strong momentum into 2018

Full Year Results . 2017 111111 Contracts –––standstand- ---outout performance

Year ended 31 December 2017 2016 ∆∆∆ • Strong revenue and profit Revenue £1,369m £1,267m 8.1% performance across all three Like-for-like growth 8.4% 5.0% 3.4ppt businesses Adjusted EBITA exexex- ex --- £86m £76m 13.2% property profits • Successful pass through of Underlying EBITA margin 6.3% 6.0% 30bps significant input price inflation Lease adjusted ROCE 14%14%14% 12%12%12% 2ppt • Branch network 169 167 2 Operating leverage driven by investments in prior years • Trading momentum remains strong in 2018

Full Year Results . 2017 121212 Consumer –––challenging market conditions

Year ended 31 December 2017 2016 ∆∆∆ Wickes Revenue £1,589m £1,518m 4.7% • Challenging DIY market (3.4)ppt Like-for-like growth 3.0% 6.4% • Profit performance impacted by Adjusted EBITA exexex- ex --- £82m £101m (18.8)% property profits poor Q4 K&B showroom execution Underlying EBITA margin 5.2% 6.7% (150)bps and cost investment Lease adjusted ROCE 7%7%7% 8%8%8% (1)ppt(1)(1)(1)ppt • Cost base challenges addressed Branch network 666 617 49 ahead of 2018 Toolstation • Accelerating double-digit like-for- like revenue growth through 2017

Full Year Results . 2017 131313 Strong cash flow generation • £25m Strong cash conversion of

£54m £83m 107% £48m £27m • Working capital outflow £130m £57m reflects input cost inflation Free cash flow £407m Growth capex £(118)m • Dividends £(113)m Net property disposal Freehold investments £(61)m £380m Acquisitions £(10)m £407m includes sale of fourth Pension contributions £(11)m Exceptional cash costs £(20)m range centre site (2016: Other items £(38)m (2016: £409m) £436m) Change in cash position £36m • Continued strong cash Adjusted Depreciation & Net Working Maintenance Interest Tax Free cash EBITA non-cash disposals capital* CapEx flow generation expected

*2017 change in net working capital figure excludes £22m in relation to the development of cloud-based software (2016: £8m)

Full Year Results . 2017 141414 Strong balance sheet supports the businesses

MidMidMid-Mid---termterm ∆∆∆ • ambition FY 2017 FY 2016 Modest reduction in LA debt driven by cash generation Net debt - £342m £378m £(36)m

Lease debt - £1,525m £1,506m £19m • Debt metrics impacted by Lease adjusted --- £1,867m £1,884m £(17)m reduction in earnings debt

LA gearing --- 42.6% 45.3% (270)bps • Significant liquidity headroom with long term Fixed charge cover 3.5x 3.1x 3.3x (0.2)x funding in place LA Debt : EBITDAR 2.5x 2.7x 2.7x ---

Liquidity position and balance sheet strong in uncertain markets

Full Year Results . 2017 151515 Capital expenditure –––disciplined approach

2017 2016 • Base capital expenditure Maintenance (including vehicles) (48) (50) similar to 2016 IT - Merchant ERP / digital capabilities* (49) (40) • Net freehold property inflow Growth capex - new stores/store refits (69) (71) of £28m over 2 years Base capital expenditure (166) (((161) (161) • On-going need to invest in IT Freehold property - new sites/existing leases (61) (68) – ERP deployment due to Gross capital expenditure (227) (((229) (229) complete in 2020 Property disposals 113 43 • Lower spend on growth Net capital expenditure (114) (((186) (186) investments forecast in 2018

*IT investments exclude payments in relation to the development of cloud-based software (2017: £22m, 2016: £8m)

Full Year Results . 2017 161616 Property investment underpins sustainable growth

Usage of freehold investments made in last 4 years • Property strategy driven by needs of Property in use but not yet mature £193m 2018 completions £49m operating businesses £75m property 2019 completions £12m not yet in use • Recycling of portfolio continued: 2020+ completions £14m Total £268m • Retail sites sold back into the market Freehold property activity in last 4 years • Cumulative cash invested £(268)m Industrial sites in higher demand Cumulative cash from disposals £239m • Approximately £20m p.a. of property Net cash invested £(30)m profits expected to continue Cumulative change in net book value £150m • Value of property assets significantly Cumulative property profits £96m above £450m NBV

Full Year Results . 2017 171717 2018 outlook • Volume outlook remains mixed given subdued RMI activity and reduced consumer confidence • Focus on pass through of cost price inflation and gross margin realisation • Determined action on cost to improve productivity and efficiency • Selective capital investment, with focus on key Group priorities – Toolstation, Wickes refits and digital capability • The Group expects performance in 2018 to be similar to 2017

Technical guidance for 2018 is provided in Appendix I

Full Year Results . 2017 181818 OPERATIONAL UPDATE ...

JOHN CARTER Full Year Results . 2017 191919 State of the Nation

111 The fundamental drivers of our markets remain strong, despite nearnear----termterm uncertainty

Creating a portfolio of marketmarket----leadingleading businesses with sustainable competitive 222 advantage for the longlong----termterm

Managing the business in a less certain environment –––taking deliberate cost 333 action, maintaining gross margins and staying disciplined on capital investment

Full Year Results . 2017 202020 General Merchanting –––adapting to the market Actions in 2017 Plans for 2018 • Price framework – improves control and • Recover commodity-led input cost inflation consistency • Manage margin mix Trading & • H1 – focus on recovery of cost price inflation • Further embed pricing framework tool: pricing to maintain gross margin • Improve pricing consistency for • strategy H2 – modest reduction in gross margin - customers business mix and price investment trials in • Refine price architecture in selected selected categories product categories

• Range centre network coverage extended to • Retain flexibility to adapt to uncertain all branches in England & Wales market conditions Costs & • Further development of digital channels • Work even harder to improve productivity • and efficiency across all cost drivers investments Selected actions to reduce cost and set the business up for 2018 • On-going optimisation of the branch estate • Continued Benchmarx network expansion

Full Year Results . 2017 212121 Enhancing our longlong----termterm structural advantage

• Multi-channel for customer • Branch network keeps us transactions and fulfilment close to our customers • Defined format strategy – both • Embedded sales culture branches and online • • Enhanced understanding Network convenience and of customer needs optimisation

• Unrivalled distribution • Broad, customer-focused capabilities giving range with fast availability customers wider choice • Competitive pricing for the • Empowered teams, best service proposition incentivised to outperform • Leading and growing tool • Best-in-class system capability hire business

Full Year Results . 2017 222222 Contracts –––sustained outperformance

• Balanced exposure across Commercial, new residential, industrial and infrastructure markets • Specialist merchants focused on deep category knowledge, high-quality service at competitive prices • Disciplined approach to pricing to recover cost price inflation and maintain gross margin • Improving efficiency across the businesses: • Consolidation of BSS administration tasks • Keyline low-cost branch model • National branch network well developed - limited capital investment required

Full Year Results . 2017 232323 Wickes –––2017 challenges addressed

Wickes progression since 2013 • Sustained industry outperformance in Revenue increase between 2013 - 2017 £273m recent years underpinned by a structurally Compound annual revenue growth rate 6.4% advantaged customer proposition Change to Wickes store network +15 stores Increase in sales per sq. ft. +19% • Disappointing H2 2017 performance driven by weak Q4 K&B showroom sales • Actions to eliminate £8m of cost in Q4 2017 with further initiatives planned • Better start to 2018 - K&B showroom proposition successfully addressed

Full Year Results . 2017 242424 PLUMBING & HEATING AND TOOLSTATION ...

Full Year Results . 2017 TONY BUFFIN 252525 P&H –––transformation plan delivering at pace • Change of leadership team, cultural reset and updated Encouraging early acceleration in growth branch incentives to reward outperformance –––but still much to do • Unified branch network simplifies organisational Transformation plan initiated structure, customer convenience and the branch estate • Significant proposition improvements, including: • 1,400 best-selling lines stocked in all branches 0.4% 5.4% 6.1%

• (1.4)% (1.1)% Trebled customer promotional participation (1.9)% (1.9)%

• Improving digital capability – City Plumbing online, (3.4)% extended range, credible pricing, spares and UFHS 2014 2015 Q12017 • H1 2016 Q2 2017 Significant improvement in wholesaling operations H2 2016 Q32017 Q4 2017 • Dedicated supply chain improving availability by 10ppts

Full Year Results . 2017 262626 Toolstation UK –––accelerating growth

• Value leadership established and accelerated shop Network growth a critical foundation to accelerate growth

opening over last three years 300 # new Toolstation UK branches opened 50 40 • Toolstation UK Sales More recent focus to drive like-for-like growth 200 30

through proposition improvements: 20 100 • Trade focused range 10 0 0 2011 2017 2012

• 2013 2014 2015 2016 2010 2007 2005 2008 Online and catalogue range extensions 2006 2009 • Enhanced promotions and counter sales Significant progression in LFL growth rates over 18 months • Mature stores (> 5yrs) continue to deliver good 15.0% like-for-like growth 10.0%

• New distribution infrastructure opening in 2018 to 5.0% support 500 stores 0.0% • Confident of adding a further 40+ stores p.a. Q3 2016 Q4 2016 Q1 2017 Q2 2017 Q3 2017 Q4 2017

Full Year Results . 2017 272727 Toolstation Europe –––building momentum • Toolstation stores in the Netherlands Accelerating likelike----forforforfor----likelike growth since 2014 Store Sales 35% delivering like-for-like growth of around 30% Digital sales 30% Like-for-like sales growth 25% moving average (RHS) • Strong online foundation – sales per 20% 15%

capita already higher than the UK 10% Lfl salesgrowth rate • 5% Network of 20 stores now open – 0% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 expected to double in 2018 2014 201420142014 2014 2015 2015 20152015 2015 2016 2016 20162016 2016 2017 2017 20172017 2017 • Store profitability trend similar to UK • New distribution centre opening in 2018 to support over 100 stores • French distribution centre and three shops opened H2 2017, early signs are encouraging

Schematic of the new distribution centre in Bleiswijk, The Netherlands

Full Year Results . 2017 282828 SUMMARY ...

JOHN CARTER Full Year Results . 2017 292929 Summary

• Executing our strategic plans to develop the best customer propositions to drive long-term growth • Our end-markets remain subdued • Adapting to market conditions – flexible trading strategy underpinned by strong cost discipline

Investments position the business well for future growth

Full Year Results . 2017 303030 QUESTIONS ... Full Year Results . 2017 313131 APPENDICES ...

I.I.I. Technical guidance II.II.II. Revenue analysis III.III.III. Market lead indicators IV.IV.IV. Branch numbers V.V.V. Sales drivers by Division VI.VI.VI. LikeLike----forforforfor----likelike sales growth VII. H1 vs. H2 margin drivers

Full Year Results . 2017 VIII. Definitions 323232 I. Technical guidance

• Effective tax rate of ~ 19% • Finance charges similar to 2017 • Capex of £140-160m, excluding freehold purchases • Property profits of ~ £20m • Progressive dividend policy underpinned by strong cash flows

Full Year Results . 2017 333333 II. Revenue analysis ––– 31 December 2017

NorthernMidlands South WestSouth East Northern Midlands South West South East Northern Midlands South West South East Geography 18.0 27.0 19.0 36.0 Geography 31.2 14.9 21.9 31.3

Timber Forest Heavyside Lightside P&H / Other Timber Forest Heavyside Lightside P&H / Other Category 11.3 9.79.79.7 47.3 11.511.511.5 20.1 Category 67.6 29.7 CashCredit Cash Credit Cash Credit Payment 23.1 76.9 Payment 4.5 95.5 Collected Delivered Collected Delivered Contracts Contracts Contracts Contracts Collected Delivered Delivery 45.2 54.8 Delivery 22.5 77.5 GeneralGeneral Merchanting Merchanting GeneralGeneral Merchanting Merchanting 0% 20% 40% 60% 80% 100% 0% 20% 40% 60% 80% 100%

Northern Midlands South West South East Northern Midlands South West South East Geography 33.9 31.7 12.9 18.1 Geography 20.0 23.5 14.7 41.8

P&H Timber Forest Heavyside Lightside P&H Category 98.3 Category 8.0 7.87.87.8 11.111.111.1 37.3 35.8

Cash Credit Cash Credit 12.8 Payment 12.2 87.8 Payment 87.4 Consumer Consumer Collected Delivered Consumer Consumer Collected Delivered Delivery 27.9 72.1 Delivery 57.7 42.3 PlumbingPlumbing && Heating Heating PlumbingPlumbing && Heating Heating 0% 20% 40% 60% 80% 100% 0% 20% 40% 60% 80% 100%

Full Year Results . 2017 343434 III. Market lead indicators

Site visitors (5)(5)(5)pt(5) ptptpt Consumer confidence (9) ptptpt

Site reservations (6)(6)(6)pt(6) ptptpt Climate for purchases 1pt1pt1pt

Mortgage approvals (9)% Equity withdrawal 0%0%0%

Housing transactions* 0%0%0% Retail Sales growth 0.6%

Housing prices +3%

Architect work load 8%8%8%

Construction output 5%5%5% Expected workload (11)(11)ptptptpt

Trade confidence +25pt New construction orders +26%

Full Year Results . 2017 353535 IV. Branch numbers

313131-31 ---DecDecDec----16161616New Closures Acquisitions 303030- 30 ---DecDecDec----17171717 Historical network growth Travis Perkins661 11 (5) -667 2009 2010 2011 2012 2013 2014 2015 2016 2017 Benchmarx172172172 15 (4)--- 183183183 General Merchanting 833 262626 (9)(9)(9) --- 850 Opening 1,262 1,303 1,813 1,868 1,896 1,939 1,9752,028 2,053

City Plumbing336 1 (32) -305 New 46 519 120 48 58 101 124828282 868686 PTS818181 - (11) -707070 Closures (5) (9) (65) (20) (15) (65) (71)(57) (63) Other191919 - (4)111 161616 Plumbing & Heating 436 111 (47) 111 391 Closing 1,303 1,813 1,868 1,896 1,939 1,975 2,028 2,053 2,076 Keyline & Rudridge656565 1 - -666666 BSS & TF Solutions616161 - (2)333 626262 CCF414141 - ---- 414141 Contracts 167167167 111 (2)(2)(2) 333 169169169 Wickes241 5 (2)--- 244 Toolstation UK255 41 (1)--- 295 Toolstation Europe121212 11 ---- 232323 Tile Giant109109109 1 (6)--- 104104104 Consumer 617617617 585858 (9)(9)(9) --- 666 Group 2,053 828282 (63) 444 2,076 Branch numbers exclude City Heating Spares and Toolhire implants

Full Year Results . 2017 363636 VVV.V. Sales drivers by Division

General Plumbing & Total revenue Contracts Consumer Group Merchanting Heating

Volume (1.4)% (1.6)% 2.7% 0.3%(0.2)%

Price and mix 2.6% 3.7% 5.7% 2.7%3.5%

LikeLike----forforforfor----likelike revenue growth 1.2% 2.1% 8.4% 3.0% 3.3%

Network expansion and acquisitions 0.9% (1.2)% 0.1% 2.3%0.6%

Trading days (0.4)% (0.4)% (0.4)% (0.6)%(0.4)%

Total revenue growth 1.7% 0.5% 8.1% 4.7% 3.5%

Full Year Results . 2017 373737 VI. LikeLike----forforforfor----likelike sales growth

LikeLike----forforforfor----likelike by quarter

Q1 2015 Q2 2015 Q3 2015 Q4 2015 Q1 2016 Q2 2016 Q3 2016 Q4 2016 Q1 2017 Q2 2017 Q3 2017 Q4 2017 General 8.1% 5.3% 1.7% 1.0% 4.7% 1.1% 0.6% 0.3% (0.3)% 0.3% 2.4% 2.6% P&H (6.1)% 1.0% 1.7% (1.9)% 2.2% (1.4)% (4.1)% (2.7)% (1.1)% (1.9)% 5.4% 6.1% Contracts 15.1% 12.9% 5.5% 1.5% 2.1% 3.1% 5.7% 9.2% 12.1% 6.4% 7.7% 7.9% Consumer 6.0% 6.9% 2.3% 6.1% 7.3% 6.4% 6.3% 5.8% 2.9% 6.5% 2.4% (2.6)% Group 5.1% 6.3% 2.6% 1.4% 4.2% 2.3% 2.0% 2.5% 2.7% 2.7% 4.1% 3.2%

LikeLike----forforforfor----likelike by half

H1 2015 H2 2015 H1 2016 H2 2016 H1 2017 H2 2017 General 6.7% 1.4% 2.9% 0.5% (0.1)% 2.5% P&H (2.9)% (0.3)% 0.4% (3.4)% (1.2)% 5.8% Contracts 13.9% 3.6% 2.7% 7.3% 9.1% 7.7% Consumer 6.5% 4.2% 6.5% 6.2% 4.7% 0.1%

Group 5.7% 2.0% 3.1% 2.2% 2.7% 3.7%

Full Year Results . 2017 383838 VII. H1 and H2 margin drivers by division

General Plumbing & Contracts Consumer Group Merchanting Heating H1 2016 adjusted operating margin 9.6% 2.8% 5.9% 5.7%6.1% (excluding property profits) H1 2017 Change in gross margin (0.0)% (1.0)% 0.6% (0.0)% 0.1% Margin impact of change in operating costs (0.4)% 0.1% (0.5)% (0.2)%(((0.5)% (0.5)% H1 2017 adjusted operating margin 9.2% 1.9% 6.31% 5.5% 5.7% (excluding property profits)

General Plumbing & Contracts Consumer Group Merchanting Heating H2 2016 adjusted operating margin 9.0% 2.5% 6.1% 7.6%6.5% (excluding property profits) H2 2017 Change in gross margin (0.5)% (0.6)% 0.6% (0.6)% (0.4)% Margin impact of change in operating costs (0.3)% 0.7% (0.2)% (2.2)%(((0.9)% (0.9)% H2 2017 adjusted operating margin 8.2% 2.6% 6.5% 4.8% 5.2% (excluding property profits)

Full Year Results . 2017 393939 VIII. Definitions

Metric Definition 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 / EBITA or EPS adjusted for exceptional items and amortisation (see Appendix II for reconciliation) Adjusted EPS Ratio of earnings before interest, tax, amortisation and 50% of annual property rental expense to debt plus equity plus eight Lease adjusted ROCE 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 Ratio of opening market price per share to closing market price per share less opening market price per share plus dividends per (“TSR”) share during the period WALE Weighted average expiry of property leases

Full Year Results . 2017 404040 VIII. Definitions (continued)

Metric Definition

Site visitors House Builders Federation Survey / monthly / December 2017 / Balance score compared to a year ago

Site reservations House Builders Federation Survey / monthly / December 2017 / Balance score compared to a year ago

Mortgage approvals Bank of England/ monthly / December 2017 / number of approvals % change year on year

Housing transactions HM Revenue & Customers / monthly / December 2017 / number of houses sold above £40k % change year on year

Housing prices Nationwide / monthly / January 2017/ house price inflation % change year on year

Consumer confidence GFK / monthly / January 2017 / index score

Climate for purchases GFK / monthly / January 2017 / index score

Equity withdrawal Bank of England / quarterly / Q3 2017 / Change in Equity withdrawal as % of net earnings compared to previous quarter

Retail sales growth British Retail Consortium / monthly / December 2017 / LFL % change year on year

Architect work load Mirza and Nacey Survey / quarterly / Q3 2017 / Index

Construction output Construction output YTD ONS / monthly / December 2017 / % change year on year

Trade confidence Travis Perkins survey materials spend / quarterly / Q4 2017 view of Q1 2018 / Balance score

Expected workload Federation of Master Builders / quarterly / Q4 2017 view of Q1 2018 / Balance score

New construction orders Office for National Statistics / quarterly / Q3 2017 / % change year on year

Full Year Results . 2017 414141 CONTACT ... [email protected]

Graeme Barnes | +44 7469 401 819 [email protected]

Zak Newmark | +44 7384 432 560 [email protected] Full Year Results . 2017 424242