Favourable Market Backdrop
- Long-term demographics, social change and shift to greater working from home provides a healthy underpin to market growth
- Housing market fundamentals are supportive over the medium term:
- Structural housing deficits
- Ageing housing stock
- Augmented by favourable window and door market trends in the near term:
- Sustainability/energy efficiency
- Compliance and buildingregulations/codes
- Larger windows, slimmer profiles, contemporary look
- Smart applications
- Affordability
Leading position in an attractive North American market
- US housing market offers very attractive growth prospects despite near-term headwinds:
- More than 17 million new homes needed in 2020s
- 24 million homes will reach “prime remodelling” age by 2027
- 30% increase in new household formation in the 2020s vs. 2010s
- Tyman is well placed to respond to this attractive market:
- Leading brands with 40–45% share of served markets
- National coverage, enabling improved customer service via optimised distribution network and manufacturing redundancy
Sustainability: an increasingly important growth driver
- Sustainability increasingly important in new product development, capital investment and M&A
- Energy efficiency, safety and security, and inclusive living all offer Tyman growth opportunities
Proven customer value proposition creates high barriers to entry
- Deep, integrated customer relationship; strategic partner for customers
- Broadest portfolio of hardware and sealing solutions in the window and door market
- Well invested businesses with scale and resilience
- Leader in customer-centric and market-driven innovation
Healthy operating margins with expansion opportunities
- Our products comprise just 5–15% of the installed cost of a window or door but deliver significant value to the end user
- Operating margins set to recover following period of supply chain disruption and inflation
- Each division has delivered double-digit margins on average since 2018 and each has a clear path to margin expansion
Strong cash generation and balance sheet
- Adjusted operating cash conversion averages over 100% since 2018 compared to target of 90%
- Free cash flow as a percent of sales averages 9% since 2018
- Target net debt:EBITDA range of 1.0–1.5x