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Marshalls Half Year Results 2026 10 August 2026
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2 Q&A Summary & outlook Operational review Financial review Group highlights Agenda Marshalls plc Half Year Results 2026 | Group highlights | Financial review | Operational review | Summary & outlook | Q&A | Callisto silver grey and Prospero mid-grey granites | Wembley Park, London
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Group highlights Simon Bourne | Chief Executive Officer Lincoln Clay Interlocking Pantile, Marley | My Home Developments, Gainsborough, Lincolnshire
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Sharper execution converting self-help actions into profit growth in subdued markets Marshalls plc Half Year Results 2026 | Group highlights | Financial review | Operational review | Summary & outlook | Q&A | Leading the market Our refreshed operating focus is improving outcomes • Focus on NPD to strengthen customer engagement and growth in strategic partner spend • Disciplined pricing supporting recovery whilst protecting partnerships • Service and reliability helping brands convert market position into stronger outcomes Strategy is unchanged; focus remains on execution and delivery Landscaping recovering Performance improvement plan translating into profit • Profitability recovering as self-help actions improve performance • Six new product ranges at launch phase filling gaps in product offer • Cost reduced with target savings on track Portfolio balance Diversified portfolio providing counter-cycle resilience • Roofing a strong profit contributor; performance in-line • Water Management strategically well positioned but traditional end-markets are weak • Growth opportunities remain diversified across demand trends & markets Financial discipline Deleveraging progressing in line with expectations • Cash conversion continues to be strong • Net debt reduced compared to June 2025 • Pre-IFRS-16 leverage reduced to 1.7x Tangible progress against the priorities we set out in March 4
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Financial review Justin Lockwood | Chief Financial Officer Clearline Fusion System, Viridian Solar | Private home, Northumberland
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Note: Adjusted measures are stated after adding back adjusting items totaling £5.2 million 0.5% 8.1%£30.7m 13.2%£24.9m Adjusted basic EPS 14.4% Interim dividend 13.6%2.5p Pre-IFRS 16 net debt £14.8 million£136.8m Revenue Adjusted operating profit Adjusted PBT £317.8m 7.6p 6 Sharper execution delivered higher profit, earnings and dividend, with continued deleveraging Marshalls plc Half Year Results 2026 | Group highlights | Financial review | Operational review | Summary & outlook | Q&A | Financial highlights
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7 Revenue (£'m) 319.5 (0.3) (0.8) (0.6) 317.8 H1 2025 Landscaping Products Building Products Roofing Products H1 2026 275 280 285 290 295 300 305 310 315 320 325 Note: Operating profit stated after adding back adjusting items totaling £5.2 million Marshalls plc Half Year Results 2026 | Group highlights | Financial review | Operational review | Summary & outlook | Q&A | Group revenue and operating profit 8% increase in operating profit delivered from marginally lower revenue Operating profit (£'m) 28.4 (0.7) (1.7) (0.5) 30.7 5.2 H1 2025 Landscaping Products Building Products Roofing Products Central Costs H1 2026 0 5 10 15 20 25 30 35 40
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Marshalls plc Half Year Results 2026 | Group highlights | Financial review | Operational review | Summary & outlook | Q&A | 8 Our performance improvement plan is delivering – Revenue held steady at £135.1 million • Activity levels in key end markets continue to be subdued however market share has increased • Revenue reflects lower volumes despite share momentum and weaker mix offset by pricing actions — Operating profit increased by £5.2 million • Landscaping improvement plan has delivered growth • Higher gross margin, lower manufacturing cost and reduced overheads – Margin improved by 3.9 ppts to 4.1% • £11 million annualised savings remain on track for delivery by the end of FY26 Landscaping Products 2026 £’m Change % Revenue Operating profit 135.1 5.5 0.2% NMF Operating margin 4.1% 3.9ppts 2025 £’m 135.4 0.3 0.2% 44% 28% 28% End-market exposure Commercial & Infrastructure New build housing RMI
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Marshalls plc Half Year Results 2026 | Group highlights | Financial review | Operational review | Summary & outlook | Q&A | 9 New housing weakness affected performance – Revenue decreased by 0.9% to £85.6 million • Continued weakness in new housing affected Water Management and Bricks & Masonry, partially offset by resilient Mortars & Screeds performance • Infrastructure-related revenue in Water Management more than doubled YoY – Operating profit decreased by £0.7 million • The impact of lower volumes on operating profit was compounded by planned site maintenance shutdowns and oil price related on-costs • Partially offset by targeted commercial actions and continued overhead discipline – Margin reduced by 0.8 ppts to 7.2% • Lower volumes and operational performance diluted margin during H1 Building Products 2026 £’m Change % Revenue Operating profit 85.6 6.2 0.9% 10.1% Operating margin 7.2% 0.8ppts 2025 £’m 86.4 6.9 8.0% End-market exposure 40% 54% Commercial & Infrastructure New build housing RMI
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10 Disciplined commercial action delivered expected performance Roofing Products – Revenue decreased by 0.6% to £97.1 million • Continued Viridian Solar growth partly offset lower Marley revenue • Marley revenue affected by subdued and competitive concrete roof tile market partially offset by growth in clay tiles and improved system attachment rates – Operating profit decreased by £1.7 million • Viridian Solar profit growth from higher volumes and continued commercial discipline • Marley profit was lower YoY due to lower concrete tile volumes and weaker manufacturing efficiency – Margin reduced by 1.6 ppts to 23.8% • Despite lower volumes, performance was in line with expectations, reflecting anticipated market dynamics and disciplined commercial action 2026 £’m Change % Revenue Operating profit 97.1 23.1 0.6% 6.9% Operating margin 23.8% 1.6ppts 2025 £’m 97.7 24.8 25.4% End-market exposure 53% 38% Commercial & Infrastructure New build housing RMI Marshalls plc Half Year Results 2026 | Group highlights | Financial review | Operational review | Summary & outlook | Q&A |
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11 – Operating profit increased by 8.1% to £30.7 million • Landscaping Products profit recovery more than offset weaker contributions from Building and Roofing Products – Finance costs reduced by 9.4% to £5.8m reflecting the impact of tight working capital management and deleveraging – Adjusted profit before tax increased by 13.2% to £24.9 million with the increase in operating profit supported by lower finance costs – Effective tax rate of 23%, reflects headline UK corporation tax rate and benefit of a patent box arrangement – Adjusted EPS increased by 14.4% to 7.6 pence supported by a lower effective tax rate Note: Operating profit, PBT and EPS stated after adding back adjusting items totaling £5.2 million Improved operating performance and lower finance costs drove double-digit growth in adjusted PBT and EPS Adjusted profit before taxation and earnings per share 2026 £’m Change % Operating profit Finance costs Profit before taxation 30.7 (5.8) 24.9 8.1% (9.4)% 13.2% Effective tax rate (%) 23% 1.0 ppts EPS – pence 7.6p 14.4% 2025 £’m 28.4 (6.4) 22.0 24% 6.6p Marshalls plc Half Year Results 2026 | Group highlights | Financial review | Operational review | Summary & outlook | Q&A |
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Pre-IFRS 16 net debt bridge (£’m) 12 – Adjusted EBITDA of £44.0 million funded seasonal working capital investment and other operational cash requirements, with annualised operating cash conversion of 98% – Working capital outflow of £19.7 million, reflecting the Group’s normal first-half seasonal profile; disciplined working capital management delivered lower cash outflow than 2025 – Finance and tax payments totaled £11.4 million, with interest costs benefiting from continued deleveraging – Net capital expenditure was £7.0 million comprising £8.5 million of gross capex and £1.5 million receipts from sale of surplus assets – Pre-IFRS 16 net debt reduced to £136.8 million, £1.1 million lower than December 2025 and £14.8 million lower year-on- year. (137.9) 44.0 (19.7) (11.4) (7.0) (2.9) (1.9) (136.8) Strong cash conversion and disciplined working capital management supported continued deleveraging Net debt Marshalls plc Half Year Results 2026 | Group highlights | Financial review | Operational review | Summary & outlook | Q&A |
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13 – Continued strong management of working capital: debtor days slightly increased year-on-year whilst creditor days and inventory turn slightly reduced – Adjusted ROCE of 7.2%; the medium-term target to rebuild ROCE to c.15% remains a key strategic priority – Robust balance sheet maintained with leverage lower at 1.7x due primarily to reduced net debt – Significant liquidity available from £125 million in undrawn bank facilities at June 2026 • Provides sufficient capital together with organic cash generation to execute our strategic plans Good control of working capital; medium-term target to rebuild ROCE to c.15%; significant liquidity Ongoing capital discipline 2026 Change Debtor days Creditor days Average inventory turn 46 days 57 days 2.7X 2 days 0.1X Adjusted ROCE LTM 7.2% 0.1ppts Net debt to adjusted EBITDA 1.7X 0.1X 2025 44 days 58 days 2.8X 7.3% 1.8X 1 day Marshalls plc Half Year Results 2026 | Group highlights | Financial review | Operational review | Summary & outlook | Q&A |
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14 Invest to enhance competitive advantage 2 Dividends 3 Balance sheet deleveraging 4 Selective acquisitions 5 Organic growth 1 Maintain dividend cover of two times adjusted earnings One third of anticipated full year dividend paid at interim stage. Interim dividend declared of 2.5 pence per share Balance sheet deleveraging in H1 2026 Leverage target range of 0.5 to 1.5X EBITDA provides optimal flexibility Strategic plan requires investment of £20–£30 million pa in medium term Gross capex in 2026 is expected to be around the lower end of this range Transform & Grow Selective bolt-on M&A to support growth strategy Unchanged and focused on optimising shareholder value Capital allocation policy Marshalls plc Half Year Results 2026 | Group highlights | Financial review | Operational review | Summary & outlook | Q&A |
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Operational review Simon Bourne | Chief Executive Officer Glencoe Vintage Stock Facing Brick, Marshalls Bricks & Masonry | St Leonard’s Quarter, Exeter
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Marshalls plc Half Year Results 2026 | Group highlights | Financial review | Operational review | Summary & outlook | Q&A | The refreshed operating approach set out in March is now embedded and delivering results Sharper execution translating into measurable outcomes Enhanced efficiency with released capacity focused on higher-return priorities More selective activity Strategic Lens Operating shift What it’s delivering Earlier identification and management of emerging issues and opportunities Anticipating and acting Clearer organisational accountability for delivery Converting insight into outcomes Focus Pace Performance Why it matters Confidence Resilience Upside Clearer priorities and accountability support delivery credibility Faster intervention protects performance in subdued markets A lower cost base provides operating leverage when volumes recover 16
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Our diversified portfolio provides multiple routes to organic value creation 17 12%+ 20% to 25% Cyclical upside Structural growth Self-help actions Target margin Value creation driver Relative exposure by business PRIMARY High core driver PRIMARY High core driver PRIMARY High core driver PRIMARY High core driver Low Exposure Low Exposure Low Exposure Low Exposure 12%+ PRIMARY High core driver Low Exposure High Exposure Medium Exposure Medium Exposure Medium Exposure Medium Exposure Marshalls plc Half Year Results 2026 | Group highlights | Financial review | Operational review | Summary & outlook | Q&A |
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A pathway to doubling adjusted operating profit 18 Illustrative operating profit progression by value creation driver £56m £112m Self-help Actions Structural growth Cyclical upside FY2025 +£25m +£14m +£17m Double AOP Margin expansion, cost management and share growth in mature markets Exposure to growth markets benefiting from long-term tailwinds Demand normalisation & operating leverage c55% Balanced delivery AOP uplift from self-help & growth market exposure Downside flexibility Further cost actions provide optionality if traditional end- market recovery is in doubt SELF-HELP ACTIONS Marshalls plc Half Year Results 2026 | Group highlights | Financial review | Operational review | Summary & outlook | Q&A | Medium-term
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Commercial excellence and cost base reset are restoring momentum Share growth | Continued margin improvement | Further recovery potential Commercial excellence Driving greater value from our specification-led model • Earlier engagement with decision-makers Project quotation activity up 15% • New digital tools provide improving project support MaDE launched in June • NPD strengthening our mid-range offer Lunar® Textured launched in May Cost base reset Creating a more efficient cost base • Cost base reset delivering to plan £11m annualised savings on-track • Network optimisation improving efficiency Optimisation projects reduced intra-site transfer volumes by 19% • Complexity reducing across the business 30% SKU reduction since 2025 Customer engagement Customer confidence rebuilt • Materially improved service performance NPS +11 ppts (LTM) • Strengthening customer commitment Growth in share of wallet • Improved engagement is supporting share momentum Market share growth of 2.6ppts SELF-HELP ACTIONS 19 Marshalls plc Half Year Results 2026 | Group highlights | Financial review | Operational review | Summary & outlook | Q&A |
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Marley being managed with commercial and operational discipline Increase share of roof Defending heartlands Drive share in private RMI Operational Excellence Earnings resilience Resilient profit contribution | Growing attachment rates | Market share taken Social RMI Defend share in social housing in a more competitive market Total market share increased Our full roof-system Grow system attachment across accessories, ventilation and solar Attachment rates up 2ppts compared to H2 2025 Private RMI Deepen contractor engagement and make Marley easier to specify, buy and install Digital tool suite launched in Q1 Maintain service, quality and cost discipline while progressing capital expenditure to improve efficiency Quality & efficiency ~20% increase in H1 CapEx 20 SELF-HELP ACTIONS Marshalls plc Half Year Results 2026 | Group highlights | Financial review | Operational review | Summary & outlook | Q&A |
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Viridian Solar has successfully scaled and is ready for the next growth phase Scaled platform | Future Home Standard readiness | Safety-led adjacent opportunity STRUCTURAL GROWTH 21 Part L ~300% Revenue Growth 2021-25 H1 momentum Future Homes Standard In addressable market by 2030 2X increase Our next growth phase Safety Countries served by ArcBox 17 Scalable innovation • Transition to Building Regulations Part L 2021 is now largely embedded. • Viridian Solar remains focused on optimising share and margin in new build roof-integrated solar. • Design capability strengthening long- term customer partnerships. • Future Homes Standard will provide a new regulatory tailwind. • Growth opportunity expected from both broader adoption of solar and larger system sizes. • Focus is on customer readiness, specification support and capacity planning as the transition progresses • ArcBox addresses growing solar safety and fire-risk management demands. • Product optionality extends beyond UK, with growing IP coverage and early international partner development. • We are validating demand and building channel capability. Marshalls plc Half Year Results 2026 | Group highlights | Financial review | Operational review | Summary & outlook | Q&A |
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Water Management is building an infrastructure-led growth platform Stronger pipeline visibility | Greater specification influence | Readiness to convert demand Demand visibility Specification influence Operational readiness Conversion & scale 22 • Our focus is on conversion while maintaining pricing and delivery discipline. • Our objective is to build a scalable, agile, infrastructure platform. Our next phase AMP8 sales more than double H1 2025 • AMP8 investment cycle is underway. • Broader climate adaptation trends are supporting demand. • Adjacent infrastructure markets provide broader opportunity. AMP8 + Climate Adaptation £57-64Bn1 UK market to 2035 • Quote activity increasing; AMP8 pipeline improving. • Focus remains on frameworks, consultants, water companies and wider specification-led opportunities. Engaging earlier in project lifecycles Framework agreement in place with 3 water utilities • Manufacturing footprint and national delivery capability support scale. • Technical capability remains key differentiators. • Targeted NPD expanding the infrastructure offer, including cable troughs & box culverts Building capability and NPD Capital-light investment within existing network STRUCTURAL GROWTH Our infrastructure growth conversion framework 1 Government Office for Science, Economic Opportunities of Climate Adaptation for the UK, July 2026 Marshalls plc Half Year Results 2026 | Group highlights | Financial review | Operational review | Summary & outlook | Q&A |
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Bricks & Masonry is protecting margins through disciplined execution Protected market position | Stronger execution model | Operating leverage when demand recovers Execution focus Our H1 focus has been on controllable levers that protect margin Execution excellence Capital allocation remains selective; no plans to convert further landscaping lines but capital-light optionality remains Service • Reliability • Delivery • Responsiveness Customer s Adoption • Site-support • Ease-of-use • NPD Cost base • Network • Manufacturing • Logistics • National partnerships • Price negotiation CYCLICAL UPSIDE Market reality Competitive supply conditions persist New housing demand subdued Slow customer decision making 23 Marshalls plc Half Year Results 2026 | Group highlights | Financial review | Operational review | Summary & outlook | Q&A |
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Summary & outlook Simon Bourne | Chief Executive Officer Juno paving, Marshalls Landscaping | Private home
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The four things to take away from the first half Strategy is unchanged; focus remains on execution and delivery Leading the market Our refreshed operating focus is improving outcomes Landscaping recovering Performance improvement plan translating into profit Portfolio balance Diversified portfolio providing counter-cycle resilience Financial discipline Deleveraging progressing in line with expectations NPD | PRICING | RELIABILITY CUSTOMERS | PRODUCTS | COST SELF -HELP | STRUCTURAL | CYCLICAL DEBT | CASH | LEVERAGE Self-help actions delivered higher profit, earnings and dividend on marginally lower revenue 25 Marshalls plc Half Year Results 2026 | Group highlights | Financial review | Operational review | Summary & outlook | Q&A |
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No material market recovery assumed in H2 2026: focus on tight control of execution, cost, cash and capital support confidence despite more volatile markets £11 million Landscaping savings on track: operational improvements delivering outcomes in-line with expectations FY26 profitability expectations unchanged: ‘Transform & Grow’ strategy supports medium-term margin, cash and returns improvement, with a pathway to double operating profit 26 Marshalls plc Half Year Results 2026 | Group highlights | Financial review | Operational review | Summary & outlook | Q&A | Operational progress and portfolio resilience support unchanged FY26 expectations
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Appendices Marshalls site (Howley Park)
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Shareholder value creation: investment case 28 Attractive diversified portfolio of businesses, exposed to scale markets with long-term growth drivers and near-term structural market tailwinds Significant headroom for growth in our addressable markets through innovation and ‘bolt-on’ acquisitions 2-4% market outperformance Group positioned to outperform the construction market Group expected to benefit from material profit improvement due to operational leverage and optimising manufacturing network 15% Profit growth delivered through operational leverage operating margin Strategy execution delivers material increase in operating cash flow Normalisation of capital expenditure to underpin plan in medium term 90% £20-30m Highly cash generative business model cash conversion capital expenditure pa Increase in free cash flow de-levers the balance sheet and provides capital for bolt-on acquisitions or return to shareholders 0.5 -1.5x Free cash flow de-levers balance sheet pre-IFRS16 net debt to EBITDA leverage target range Expected earnings growth will drive dividend growth Increased returns expected without material increase in capital employed Strategy execution increases cyclical resilience 2x 15% Profitable growth increases shareholder returns dividend cover return on capital employed
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Funding and liquidity 29 Sustained reduction in net debt with significant liquidity and covenant headroom – Syndicated bank facility of £270 million – matures in November 2029 – Net debt of £175.3 million and £136.8 million on a pre-IFRS16 basis – Cash generative nature of the Group illustrated by £14.8 million year-on-year reduction in pre-IFRS16 net debt – Comfortable headroom against covenants • EBITA : Interest Charge | 6.1X (covenant = more than 3X) • Net debt : Adjusted EBITDA | 1.7X (covenant = less than 3X) – Bank facility headroom of £125 million at June 2026 Pre-IFRS 16 net debt (£’m) 208.3 184.6 155.8 151.6 136.8 June 2022 June 2023 June 2024 June 2025 June 2026
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£’M H1 2026 H1 2025 Change % Revenue 317.8 319.5 (0.5)% Adjusted results EBITDA 44.0 42.9 2.6% Operating profit 30.7 28.4 8.1% Profit before tax 24.9 22.0 13.2% Basic EPS - pence 7.6 6.6 14.4% ROCE (%) 7.2 7.3 (0.1ppts) Pre-IFRS16 net debt 136.8 151.6 (9.8)% Statutory results Operating profit 25.5 18.1 40.9% Profit before tax 19.7 11.7 68.4% Basic EPS - pence 6.0 3.5 71.4% Results summary 30
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Adjusted profit before taxation and earnings per share 31 Bridge of reported result to adjusted result £’m 2026 Reported 2026 Adjusting 2026 Adjusted 2025 Reported 2025 Adjusting 2025 Adjusted Operating profit 25.5 5.2 30.7 18.1 10.3 28.4 Net finance costs (5.8) - (5.8) (6.4) - (6.4) Profit before taxation 19.7 5.2 24.9 11.7 10.3 22.0 Taxation (4.5) (1.3) (5.8) (2.8) (2.5) (5.3) Profit after taxation 15.2 3.9 19.1 8.9 7.8 16.7 Earnings per share – pence 6.0p 1.6p 7.6p 3.5p 3.1p 6.6p
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2026 £’m 2025 £’m 1. Amortisation of acquired intangible assets (5.2) (5.2) 2. Impairment charges, restructuring charges and similar costs - (5.1) Total adjusting items (5.2) (10.3) Adjusting items charged to profit before taxation 32 Notes: 1. Amortisation of intangible assets arising on acquisitions 2. Impairment charges, restructuring and similar costs comprise asset impairment charges, redundancy costs, other site closure costs and similar expenses
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33 Disclaimer – For the purposes of the following disclaimer, references to this “presentation” shall be deemed to include references to the presenters’ speeches, the question and answer session and any other related verbal or written communications. – This presentation, which is personal to the recipient and has been issued by Marshalls plc (“Marshalls”), comprises slides for a presentation in relation to Marshalls’ preliminary results, and is solely for use at such presentation. – This presentation and these slides are confidential and may not be reproduced, redistributed or passed on directly or indirectly to any other person or published in whole or in part for any purpose. – This presentation and associated discussion includes forward-looking statements. Information contained in this presentation relating to Marshalls has been compiled from public sources. All statements other than statements of historical fact included in this announcement, including without limitation those regarding the plans, objectives and expected performance of Marshalls, are forward-looking statements. Marshalls has based these forward-looking statements on its current expectations and projections about future events, including numerous assumptions regarding its present and future business strategies, operations, and the environment in which it will operate in the future. – Forward-looking statements generally can be identified by the use of forward-looking terminology such as “ambition”, “may”, “will”, “could”, “would”, “expect”, “intend”, “estimate”, “anticipate”, “believe”, "illustrative", "illustration", “plan”, “seek” or “continue”, or negative forms or variations of similar terminology. Such forward-looking statements involve known and unknown risks, uncertainties, assumptions and other factors related to Marshalls. – By their nature, forward-looking statements involve risks, uncertainties and assumptions and many relate to factors which are beyond the control of Marshalls, such as future market and economic conditions, external factors affecting operations and the behaviour of other market participants. Actual results may differ materially from those expressed in forward-looking statements. Given these risks, uncertainties and assumptions, you are cautioned not to put undue reliance on any forward-looking statements. In addition, the inclusion of such forward-looking statements should under no circumstances be regarded as a representation by Marshalls that Marshalls will achieve any results set out in such statements or that the underlying assumptions used will in fact be the case. – Other than as required by applicable law or the applicable rules of any exchange on which securities of Marshalls may be listed, Marshalls has no intention or obligation to update or revise any forward-looking statements included in this presentation. – This presentation is for information only and does not constitute or form part of any offer or invitation to sell, or any solicitation of any offer to purchase, any shares in Marshalls or any other securities, nor shall it or any part of it nor the fact of its distribution form the basis of, or be relied upon in connection with, any contract or investment decision related thereto. No investment advice is being given in this presentation. Marshalls Full Year 2026 Results