Diploma PLC (DPLM:LN)

Industrials/Industrial Suppliers Price: 3,040.00 GBX Report Date: September 24, 2021 Business Description and Key Statistics

Diploma is engaged in supplying technical products and services. Current YTY % Chg Co. is organised into three main reportable business Sectors: Life Sciences, Seals and Controls. The Life Sciences Sector Revenue LFY (M) 538 -1.2 businesses supply a range of consumables, instrumentation and EPS Diluted LFY 0.44 -20.5 related services to the healthcare and environmental industries. The Seals Sector businesses supply a range of seals, gaskets, Market Value (M) 3,783 filters, cylinders, components and kits used in heavy mobile machinery and specialised industrial equipment. The Controls Shares Outstanding LFY (000) 124,445 Sector businesses supply specialised wiring, cable, connectors, Book Value Per Share 4.23 fasteners and control devices used in a range of techical applications. EBITDA Margin % 15.30 Net Margin % 9.2 Website: www.diplomaplc.com Long-Term Debt / Capital % 0.0 ICB Industry: Industrials Dividends and Yield TTM 0.30 - 0.99% ICB Subsector: Industrial Suppliers Payout Ratio TTM % 47.1 Address: 12 Charterhouse Square London 60-Day Average Volume (000) 146 GBR 52-Week High & Low 3,166.00 - 2,050.00 Employees: 2,002 Price / 52-Week High & Low 0.96 - 1.48

Price, Moving Averages & Volume

3,232.8 3,232.8 Diploma PLC is currently trading at 3,040.00 which is 0.2% above its 50 day moving 3,049.1 3,049.1 average price of 3,034.68 and 12.5% above its 200 day 2,865.3 2,865.3 moving average price of 2,702.79.

2,681.6 2,681.6 DPLM:LN is currently 4.0% below its 52-week high price of 3,166.00 and is 48.3% above 2,497.9 2,497.9 its 52-week low price of 2,050.00. Over the past 52- 2,314.1 2,314.1 weeks, DPLM:LN is up 39.8% while on a calendar year-to- date basis it is up 38.7%. 2,130.4 2,130.4 The Relative Strength Index (RSI) indicator for DPLM:LN is 1,946.6 1,946.6 currently 45.75. An RSI value of 70 and above is considered 1,762.9 1,762.9 overbought and 30 and below 10/20 11/20 12/20 1/21 2/21 3/21 4/21 5/21 6/21 7/21 8/21 9/21 oversold. Volume (000) 956 956

717 717

478 478

239 Mean (221.96) 239

0 0 10/20 11/20 12/20 1/21 2/21 3/21 4/21 5/21 6/21 7/21 8/21 9/21

Price Price (50-Day Simple Moving Average) Price (200-Day Simple Moving Average)

Industrials/Industrial Suppliers Price: 3,040.00 GBX Report Date: September 24, 2021 Price Performance, Technical Indicators & Risk Metrics

Difference Price Performance % Change vs FTSE 350 Technical Indicators 1-Day % -2.19 -1.71 50-Day Average Price 3034.68 1-Week % -3.98 -4.24 Price / 50-Day Average 1.00 4-Week % -0.52 0.90 200-Day Average Price 2702.79 52-Week % 39.83 15.48 Price / 200-Day Average 1.12 RSI - Relative Strength Index 45.75 Quarter-to-Date % 4.68 3.55

Year-to-Date % 38.69 28.47 Risk Metrics Last Month % 3.65 1.73 Price Volatility 33.74 Last Quarter % 13.97 9.30 Sharpe Ratio 0.38 Last Calendar Year % 8.30 21.29 Sortino Ratio 0.83

5-Year Price Performance vs. FTSE 350

Diploma PLC Current: 3.46 CAGR: 28.3% Over the past five years, FTSE 350 Index Current: 1.18 CAGR: 3.4% Diploma PLC's stock price is up 245.8% which is 227.4% 3.7 3.7 above the FTSE 350 Index performance of 18.4% over the same period. Diploma PLC's 3.5 DPLM:LN 3.5 cumulative annualized growth rate (CAGR) over the five year 3.2 3.2 period has been 28.3% while that of the FTSE 350 Index has been 3.4%. 3.0 3.0 Over the past year, Diploma PLC's stock price performance 2.7 2.7 of 39.8% has outperformed that of the FTSE 350 Index by 2.5 2.5 15.5%. On a year-to-date basis, Diploma PLC's stock price performance of 38.7% 2.2 2.2 has outperformed the FTSE 350 Index by 28.5%. 2.0 2.0 Over the past week, Diploma PLC's stock price performance 1.7 1.7 of -4.0% has underperformed that of the FTSE 350 Index by 4.2%. 1.5 1.5

1.2 ^NMX:LN 1.2

1.0 1.0

0.7 0.7 2017 2018 2019 2020 2021 2022

Industrials/Industrial Suppliers Price: 3,040.00 GBX Report Date: September 24, 2021 Growth and Profitability Metrics

5-Year 10-Year Historical Growth 3-Year 5-Year 10-Year Profitability Current Average Average Revenues % 6.0 10.0 11.4 Gross Margin % 36.1 35.9 36.5 Revenues Per Share % 6.0 10.0 11.3 EBITDA Margin % 15.3 16.0 17.0 EBITDA % 4.1 7.9 9.2 Pre-Tax Margin % 12.4 14.5 15.6 EPS Diluted % 1.2 6.0 8.6 Net Margin % 9.2 10.6 11.1 Free Cash Flow % 10.8 12.7 12.3 Return on Equity % 13.6 19.1 19.4 Cash from Operations % 12.7 13.1 13.0 Return on Capital % 13.1 17.5 18.4 Book Value % 22.3 20.4 13.4 Return on Assets % 9.0 13.2 13.8

Revenue (M) Diploma PLC's cumulative annualized revenue growth Current: 538.40 Median: 485.10 High: 544.70 Low: 382.60 CAGR: 8.9% rate over the charted period is 577.1 577.1 544.7 538.4 8.9%. This compares to cumulatative annualized 509.6 485.1 509.6 growth of 6.0% over the past 3 451.9 years. 442.0 442.0 382.6 374.5 374.5 2016 2017 2018 2019 2020 2021 Diploma PLC's cumulative EPS Diluted annualized EPS growth rate Current: 0.44 Median: 0.44 High: 0.55 Low: 0.34 CAGR: 6.7% over the charted period is 0.59 0.59 6.7%. This compares to 0.55 cumulatative annualized 0.50 0.48 0.50 growth of 1.2% over the past 3 0.44 years. 0.42 0.42 0.42 0.34 0.33 0.33 2016 2017 2018 2019 2020 2021

Net Profit Margin % Diploma PLC's net profit margin of 9.2% is 1.4% below Current: 9.15 Median: 10.66 High: 11.36 Low: 9.15 CAGR: -2.2% the period's mean net margin 11.5 11.5 of 10.6%. During the charted period, the observed net profit 10.7 Mean (10.58) 10.7 margin high and low were 11.4% and 9.2% respectively. 9.8 9.8

9.0 9.0 2016 2017 2018 2019 2020 2021 Diploma PLC's return on Return on Equity % equity of 13.6% is 5.5% below Current: 13.60 Median: 19.80 High: 20.70 Low: 13.60 CAGR: -8.1% the period's mean return on 21.1 21.1 equity of 19.1%. During the Mean (19.12) charted period, the observed 18.5 18.5 ROE high and low were 20.7% and 13.6% respectively. 15.8 15.8

13.2 13.2 2016 2017 2018 2019 2020 2021

Industrials/Industrial Suppliers Price: 3,040.00 GBX Report Date: September 24, 2021 Valuation Metrics

5-Year 10-Year 5-Year 10-Year Current Median Median Current Median Median

Price / EPS TTM 69.9 29.6 25.6 Earnings Yield % 1.84 3.42 3.97

Price / Sales 6.4 3.2 2.8 Free Cash Flow Yield % 2.24 3.74 4.65

Price / Operating Cash Flow 55.6 26.8 23.4 Dividend Yield % 0.99 1.75 2.03

Price / Book Value 7.2 5.5 4.9 Enterprise Value / EBITDA 43.4 19.8 16.8

Price / EPS TTM Diploma PLC is trading at 69.89 times its EPS generated Current: 69.89 Median: 29.57 High: 72.78 Low: 23.94 CAGR: 21.7% during the latest fiscal year. 75.2 75.2 This multiple is above the historically observed median 57.3 57.3 of 29.57, while high and low observations have been 72.78 and 23.94. 39.4 39.4 Median (29.57) 21.5 21.5 2016 2017 2018 2019 2020 2021 Price / Sales Diploma PLC is trading at a Price to Sales ratio of 6.39 Current: 6.39 Median: 3.22 High: 6.66 Low: 2.62 CAGR: 19.0% based on sales generated 6.86 6.86 during the latest fiscal year. This ratio is above the 5.38 5.38 historically observed median ratio of 3.22, while high and low observations have been 3.90 3.90 6.66 and 2.62. Median (3.22)

2.42 2.42 2016 2017 2018 2019 2020 2021 Diploma PLC is trading at a Price / Book Value Price to Book ratio of 7.18 Current: 7.18 Median: 5.49 High: 7.94 Low: 4.36 CAGR: 6.5% based on book value at the 8.1 8.1 latest fiscal year end. This ratio is above the historically observed median of 5.49, 6.8 6.8 while high and low observations have been 7.94 5.5 Median (5.49) 5.5 and 4.36.

4.2 4.2 2016 2017 2018 2019 2020 2021 Diploma PLC has a Free Cash Free Cash Flow Yield % Flow Yield of 2.24% based on Current: 2.24 Median: 3.74 High: 5.40 Low: 2.15 CAGR: -15.6% free cash flow generated 5.6 5.6 during the latest fiscal year. This value is below the historically observed median 4.4 4.4 yield of 3.74%, while high and Median (3.74) low observations have been 3.2 3.2 5.40 and 2.15.

2.0 2.0 2016 2017 2018 2019 2020 2021

Industrials/Industrial Suppliers Price: 3,040.00 GBX Report Date: September 24, 2021 Dividends Data

Dividends Per Share TTM 0.30 Payout Ratio TTM % 47.13% Dividend Yield TTM % 0.99%

Rate Ex Date Record Date Payment Date Currency Note 0.300 26-11-2020 27-11-2020 25-01-2021 GBP FINAL GROSS 0.205 28-11-2019 29-11-2019 22-01-2020 GBP FINAL GROSS 0.085 23-05-2019 24-05-2019 12-06-2019 GBP INTERIM GROSS 0.178 29-11-2018 30-11-2018 23-01-2019 GBP FINAL GROSS 0.077 24-05-2018 25-05-2018 13-06-2018 GBP INTERIM GROSS 0.160 30-11-2017 01-12-2017 24-01-2018 GBP FINAL GROSS 0.070 25-05-2017 26-05-2017 14-06-2017 GBP INTERIM GROSS 0.138 01-12-2016 02-12-2016 25-01-2017 GBP FINAL GROSS 0.062 26-05-2016 27-05-2016 15-06-2016 GBP INTERIM GROSS 0.124 26-11-2015 27-11-2015 27-01-2016 GBP FINAL NET

Dividend Growth and Yield

Dividends Per Share TTM Diploma PLC's trailing 12- month dividend per share is Current: 0.30 Median: 0.24 High: 0.30 Low: 0.19 CAGR: 10.1% 0.30 and its dividend has 0.31 0.31 grown at a cumulative annualized rate of 10.1% over 0.29 0.29 the charted period. This compares to dividend growth 0.27 0.27 of 46.30% over the past year and cumulative annualized growth of 8.20% over the past 0.25 0.25 3 years.

0.22 0.22

0.20 0.20

0.18 0.18 2016 2017 2018 2019 2020 2021

Dividend Yield TTM % Diploma PLC's current dividend yield is 0.99% based Current: 0.99 Median: 1.75 High: 2.16 Low: 0.87 CAGR: -14.2% on trailing 12 month 2.22 2.22 dividends. The current yield is below the historically observed 1.99 1.99 median of 1.75% and, over the charted time period, the 1.75 1.75 observed high yield has been 2.16% and the observed low yield has been 0.87%. 1.52 1.52

1.28 1.28

1.04 1.04

0.81 0.81 2016 2017 2018 2019 2020 2021

Industrials/Industrial Suppliers Price: 3,040.00 GBX Report Date: September 24, 2021 ICB Subsector Peer Comparisons

Price Change Year to Date % Price Change Last Calendar Year % -23.1 -1.7 19.8 41.2 62.7 -101.4 -48.8 3.8 56.4 109.0

SIG Plc 58.8 Clipper Logistics PLC 99.5 Grafton Group PLC 44.8 Sureserve Group PLC 82.9 Clipper Logistics PLC 42.9 eEnergy Group plc 69.1 Diploma PLC 38.7 Ferguson PLC (New) 29.7 Latham (James) PLC 38.4 Electrocomponents PLC 28.5 eEnergy Group plc 34.0 Peer Group Average 20.4 Sureserve Group PLC 29.7 NWF Group Plc 8.3 Peer Group Average 28.7 Diploma PLC 8.3 Electrocomponents PLC 26.1 Grafton Group PLC 6.4 Ferguson PLC (New) 19.0 Latham (James) PLC -4.1 NWF Group Plc -4.1 Essentra Plc -29.7 Essentra Plc -12.1 SIG Plc -74.4 -23.1 -1.7 19.8 41.2 62.7 -101.4 -48.8 3.8 56.4 109.0

Price / EPS TTM Price / Book Value 0.0 26.1 52.2 78.3 104.4 0.0 13.1 26.2 39.3 52.3

SIG Plc 99.9 eEnergy Group plc 49.9 eEnergy Group plc 99.9 Grafton Group PLC 39.3 Essentra Plc 99.9 Clipper Logistics PLC 28.5 Diploma PLC 69.9 Peer Group Average 13.2 Clipper Logistics PLC 51.9 Diploma PLC 7.2 Peer Group Average 51.3 Electrocomponents PLC 5.7 Electrocomponents PLC 39.9 Ferguson PLC (New) 5.4 Grafton Group PLC 29.6 Sureserve Group PLC 2.6 Ferguson PLC (New) 25.0 Latham (James) PLC 2.1 Sureserve Group PLC 21.3 NWF Group Plc 1.8 Latham (James) PLC 17.0 Essentra Plc 1.3 NWF Group Plc 10.3 SIG Plc 1.0 0.0 26.1 52.2 78.3 104.4 0.0 13.1 26.2 39.3 52.3

EPS 5-Year Growth Rate % Revenue 5-Year Growth Rate % -121.8 -79.3 -36.7 5.8 48.3 -26.5 4.7 35.9 67.1 98.3

Electrocomponents PLC 40.6 eEnergy Group plc 92.6 Ferguson PLC (New) 37.4 Clipper Logistics PLC 16.4 Sureserve Group PLC 18.1 Peer Group Average 12.3 Clipper Logistics PLC 16.7 Ferguson PLC (New) 10.4 NWF Group Plc 7.3 Diploma PLC 10.0 Latham (James) PLC 7.0 Electrocomponents PLC 9.2 Diploma PLC 6.0 NWF Group Plc 6.9 Grafton Group PLC 1.8 Latham (James) PLC 6.1 Peer Group Average -6.0 Grafton Group PLC 2.6 Essentra Plc -42.7 SIG Plc -3.9 eEnergy Group plc -58.1 Essentra Plc -4.0 SIG Plc -100.0 Sureserve Group PLC -10.5 -121.8 -79.3 -36.7 5.8 48.3 -26.5 4.7 35.9 67.1 98.3

Industrials/Industrial Suppliers Price: 3,040.00 GBX Report Date: September 24, 2021 Abbreviations: CAGR - Cumulative annual growth rate. EBIT - Earnings before interest and taxes. EBITDA - Earnings before interest, taxes, depreciation & amortization. LFY - Last fiscal year M - Million LON - London Stock Exchange

Definitions: Market Value - Weekly Price times latest Shares Outstanding times any applicable ADR factor. Revenue - Sum of the last four quarters of Revenues. Revenue Per Share - Sum of the last four quarters of Total Revenue divided by Weighted Average Shares Outstanding. Operating EPS LFY - EPS excluding non-recurring, non-operating items, fiscal year aligned TTM value. 60-Day Average Volume (000) - The average of the last 60 daily volume values in thousands of shares. Price 52-Week High - The high closing price from the last 52 weeks of daily closing prices. Price 52-Week Low - The low closing price from the last 52 weeks of daily closing prices. Price / 52-Week High - Latest price divided by the high price from the past 52 weeks of daily closing prices. Price / 52-Week Low - Latest price divided by the low price from the past 52 weeks of daily closing prices. 50-Day Average Price - Mean of last 50 daily closing prices. 200-Day Average Price - Mean of last 200 daily closing prices. Price / 50-Day Average Price - Latest closing price divided by mean of last 50 daily closing prices, as a percentage. Price / 200-Day Average Price - Latest closing price divided by mean of last 200 daily closing prices, as a percentage. Relative Strength Index - Relative Strength Index or RSI measures the magnitude of gains over a given time period against the magnitude of losses over that period. The equation is RSI = 100 - 100 / (1 + RS) where RS = (total gains / n) / (total losses / n) and n = number of RSI periods. In this item, 14 days is used and one year of daily prices are considered. A value of 30 or below may imply oversold and 70 or above may imply overbought. Price Volatility - The standard deviation of the last 20 days of daily closing prices. Sharpe Ratio - The 5 year average of the excess monthly return over the risk - free rate(1 - month T - bill) over the 5 year standard deviation of the same series. Sortino Ratio - The same calculation as the Sharpe Ratio but with positive excess returns set to zero for the standard deviation denominator, so only negative volatility weighs in. Dividends Per Share TTM - Sum of the last four quarters of Dividends Per Share. Payout Ratio - Dividends Per Share TTM divided by Operating EPS TTM. Dividend Yield TTM % - Sum of the last four quarter of Dividends Per Share divided by Weekly Price. EBITDA - Sum of the last four quarters of EBITDA (Operating Income + Depreciation & Amortization). Free Cash Flow - Sum of the last four quarters Net Cash from Operations minus Capital Expenditures (Purchase of Property, Plant & Equipment), from the Cash Flow Statement. Book Value Per Share - Total Common Equity last quarter divided by Shares Outstanding last quarter. Gross Margin % - Sum of the last four quarters Gross Profit divided by the sum of the last four quarters Revenues. EBITDA Margin % - Sum of the last four quarters EBITDA divided by the sum of the last four quarters Revenues. Pre-Tax Margin % - Sum of the last four quarters of Earnings Before Taxes divided by sum of the last four quarters Revenues. Net Profit Margin % - Sum of the last four quarters of Operating EPS divided by sum of the last four quarters Revenues Per Share. Return on Equity % - Sum of the last four quarters of Operating EPS divided by the average of the last four quarters Book Value. Return on Capital % - Sum of the last four quarters of Operating EPS divided by the average of the last four quarters Total Capital Per Share. Return on Assets % - Sum of the last four quarters of Operating EPS divided by the average of the last four quarters Total Assets Per Share. Price / EPS TTM - Weekly Price divided by the sum of the last four quarters of Operating EPS (capped at 99.9). Price / Sales - Weekly Price divided by Revenues Per Share TTM. Price / Book Value - Weekly Price divided by Book Value Per Share last quarter. Book Value Per Share is Total Common Equity last quarter divided by Shares Outstanding last quarter (capped at 49.9). Free Cash Flow Yield % - Free Cash Flow Per Share TTM divided by Weekly Price. Enterprise Value - Market Value plus Total Debt last year plus Preferred Equity last year minus Cash & Cash Equivalents last year. Enterprise Value / Sales - Enterprise Value divided by the sum of the last four quarters of Revenue. Enterprise Value / EBITDA - Enterprise Value divided by EBITDA TTM. Enterprise Value / EBIT - Enterprise Value divided by trailing four quarters of Operating Income. Enterprise Value / Free Cash Flow- Enterprise Value divided by the sum of the last four quarters of Free Cash Flow. Russell 1000 Index - The largest 1,000 stocks by market cap, the index comprehensively covers the US large cap universe. EPS 5-Year Growth Rate % is capped at 999.9%. Revenue 5-Year Growth Rate % is capped at 999.9%.

Industrials/Industrial Suppliers Price: 3,040.00 GBX Report Date: September 24, 2021

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