2020 Global Industrial Conference

Ferguson plc Baird Global Industrial Conference Kevin Murphy, Group CEO

Baird Industrial Conference

Ferguson is a leading value added distributor of plumbing and heating products Geographic presence Ongoing revenue (+2.0%)

$19,940m

Ongoing revenue* Canada 5%

Ongoing underlying trading profit (+4.1%)

$1,595m

Revenue by customer group Facilities Fire and Supply, 5% Fabrication, 4%

eBusiness, 8%

Residential Showroom, 15%

HVAC, 10%

USA 95%

Ongoing underlying trading profit* Canada 3%

Headline EPS (-1.1%)

Waterworks, 18%

Underlying operating cash flow (+18.3%) USA 97%

Ferguson plc

* UK revenue of $1,879m and underlying trading profit of $8m in 2020 non-ongoing operations.

Commercial, 14%

Revenue by end market Civil/Infrastructure, 7%

511.6c $1,904m

Residential Trade, 19%

Industrial, 7%

Continuing adjusted EBITDA (+0.5%)

$1,797m

USA key segments and end markets

Commercial, 32%

Industrial , 7%

Residential, 54%

2

Baird Industrial Conference

Our specialist products and services are used in almost every stage of building and infrastructure development Commercial

Facilities supply

Provides commercial contractors with products and services including bidding and tendering support to assist with their projects

Provides products, services and solutions to enable reliable maintenance of commercial facilities across multiple RMI markets

Residential trade Serves the residential RMI and new construction sectors providing plumbing and sanitary supplies, tools, repair parts and bathroom fixtures to plumbing contractors

Ferguson plc

Residential showroom

eBusiness

Display products and assist customers by providing advice and project management services for their home improvement projects

Sells home improvement products directly to consumers and trade customers online through various websites

HVAC Provides HVAC and refrigeration equipment, parts and supplies to specialist contractors.

Fire and Fabrication Fabricates and supplies the protection products, fire protection systems and bespoke fabrication services to commercial contractors

Industrial Waterworks Distributes pipe, values and fittings (“PVF”), hydrants, meters and related water management products alongside related services

Supplies PVF and industrial maintenance, repair and operations (“MRO”) specializing in delivering automation, instrumentation, engineered products and turn-key solutions

3

Baird Industrial Conference

USA: a diversified but connected business with attractive market structure #3 30

$50bn

25

#6 #3

$90bn

#1 #2 #4

Market size ($bn)

20

15

#1

#1 5

5

3

10

5

Home Depot 5

7

6

4

4

MRC 18%

12%

21%

25%

Ferguson Ferguson plc

Residential Showrooms

Commercial

Market Leader if not Ferguson

Waterworks

6

HD Supply

4%

5%

22%

1%

9%

HVAC

Industrial

Fire & Fabrication

Facilities Supply

Standalone eBusiness (formerly B2C)

Residential Trade

Amazon

#1

Watsco

Number of other large competitors >1%

Other small competitors

#1 Ferguson Market Position

4

Baird Industrial Conference

We connect thousands of suppliers and customers with a unique business model Key resources and relationships

Source

Sell

Distribute

How our customers buy

How we fulfil orders

2% through central

Our people

50%

39,000 Suppliers

Delivered from branches

Our customers

18% via

account management and call centres

e-commerce

Our suppliers

15 Distribution centers

25% Collected from branches

Channels to market

10% in showrooms

+1 million Customers

16% Delivered from suppliers

Technology

2,194 Branches

Distribution network

70%

9% Delivered from distribution centers

Capital

in branches

What makes us different?

Best associates

Ferguson plc

Customers value scale

Differentiated service offering

5

Baird Industrial Conference

…with supportive structural characteristics RMI revenue accounts for 59% of total revenue

Highly fragmented industry

7%

11%

34%

Organic sales growth culture 58%

Bolt-on acquisition opportunities

Benefits of scale

31%

Customer relationships are local

2008 RMI

Ferguson plc

The RMI market now represents 59% of US revenue

59%

2020 New construction

Civil infrastructure

6

Baird Industrial Conference $19.9bn

Great growth opportunities: Consistent revenue, gross margin and profit growth

30.0% $1.6bn

$9.1bn

27.5%

$0.3bn ‘10

‘11 Group ongoing revenue

Ferguson plc

‘12

‘13

Group ongoing gross margin

‘14

‘15

‘16

‘17

‘18

‘19

‘20

Group ongoing trading profit

7

Baird Industrial Conference

Strategic update

Key strategic themes – ‘How Tomorrow Works’

•

Value added distributor

•

As trusted supplier and partner, we provide innovative products and solutions to make our customers’ projects better

•

Ensuring scale delivers customer benefits where and when they need

•

Investing in technology to drive productivity for our business and our customers

•

Innovating and always reimagining our business to serve our customers

Our strategy is delivering – we’re firmly focused on execution Ferguson plc

8

Baird Industrial Conference As trusted advisers, we provide innovative products and solutions to make our customers’ projects better.

Strategy

Where we invest

We will expand our role in the value chain to build durable competitive advantages to achieve profitable growth

We will focus on key capabilities that lay the groundwork for our path to tomorrow

Changing landscape Changing customer expectations Shifting channels Industry disruptors Labor shortage Vertical integration

People Ferguson plc

Safety

Culture of best associates

Innovation and Ferguson Ventures

Omni channel and digital capabilities

Technology and data capabilities

Supply chain and value added services

Salesforce evolution

Running a great business First in safety Customer service Strategic growth Gross margin improvement Operational leverage Capital discipline Environmental, social and governance

Integrity

Innovation

Service

Results 9

Baird Industrial Conference

Strategy: Expanding our role in the value chain

Ferguson plc

10

Baird Industrial Conference

Summary: Why invest in Ferguson?

Great returns Good trading profit margins*

Excellent returns on capital**

Dependable ordinary dividends*

8.0%

24.9%

208.2c

Ongoing underlying trading margin

Return on gross capital employed

Total ordinary dividend

* Figures are for the year ended 31 July 2020 ** On a pre-IFRS 16 basis Ferguson plc

11