Feedback From Sellside Lunch With CEO & CFO

Research evidence excerpt

Feedback From Sellside Lunch With CEO & CFO

when

they see value in the share price.

Market share objectives. For the USA mgmt appear to target stable margin, accessing

additional markets to capture top line growth (non resi, infra, retail). Mgmt cite examples of

expansions into commercial end markets in the region (airport, hospitals, public buildings), but

appears most enthusiastic about the potential from the retail market given they are now a

leading supplier into Home Depot Pro and Lowes. Mgmt also remain confident on the medium

term outlook for its emerging market positions, with upbeat messaging from the CEOs recent

visit to India and Australia, the integration of FOSROC, and upbeat views on the progress of

local management in driving the Mexico and South America opportunity.

Positive price over cost, but not in 1H26. Mgmt reiterated its confidence of positive price

over cost for FY26. However, as previous, this guidance doesn't extend to 1H26, although

mgmt reiterated margins in 1H26 should be similar to 2H25. Mgmt appear confident on pricing

increases, noting increases targeted in all regions. In reply to questions on US pricing, mgmt

highlighted the tough comparisons base (prices rising through 1H25) and as such N America

had taken the sequential improvement targeted but vs the starting point of the beginning of

year changes were limited YoY. Mgmt highlighted that the June/July price increases in roofing

are still targeted, and surcharges have been put in place on gypsum (which are expected to

remain in place a while). Outside of US, Brazil and Lat Am as a whole was reported to have

seen multiple rounds of price increases.

Trading remains in line with guidance. Management reiterate that Europe should see positive