Price at 02 Jun.

10 / Target Price

WOLSELEY (Outperform)

1,639p / 2,170p +32%

Reuters / Bloomberg: WOS.L / WOS LN
Company Highlights
GBPm / EURm
Enterprise value
5,704 / 6,837
Market capitalisation
4,651 / 5,575
Free float
4,651 / 5,575
3m average volume
30 / 36
Performance (*)
1m
3m
12m
Absolute
(0%)
1%
57%
Rel. Sector
16%
11%
43%
Rel. DJ STOXX50
9%
14%
43%
12m Hi/Lo : 1,724p -5% / 1,006p +63%
CAGR
1992/2010
2010/2013
EPS restated (**)
2%
43%
CFPS
2%
34%
Price (yearly avg from Jul. 00 to Jul. 09)
PER SHARE DATA (p)

Light Building Products | Building Materials & Infrastructure (Outperform) - United Kingdom

Analyst: Nicolas Godet (+44) 207 039 9543

8,000.0
5,000.0
3,000.0

Target Price

1,000.0
556.2

Price

Relative to DJ STOXX50 (Pence)

1 777.6

2 391.3

2 328.6

3 261.9

4 269.4

5 200.3

5 106.6

2 787.8

1 277.7

1 639.0

1 639.0

1 639.0

1 639.0

Jul. 00

Jul. 01

Jul. 02

Jul. 03

Jul. 04

Jul. 05

Jul. 06

Jul. 07

Jul. 08

Jul. 09

Jul. 10e

Jul. 11e

Jul. 12e

Jul. 13e

138.879
138.879
215
236
3.9%
311.86
1277.5
88.40

139.757
139.757
284
312
32.0%
419.01
1360.9
99.12

140.821
140.821
340
343
10.0%
463.14
1643.0
110.08
Jul. 05

140.821
140.821
378
405
18.0%
556.73
1840.6
122.59
Jul. 06

159.312
159.312
300
365
(9.9%)
561.79
2166.2
135.10
Jul. 07

157.321
157.321
47
78
(78.6%)
464.04
2135.1
46.91
Jul. 08

283.799
188.940
(413)
(198)
NS
(40.39)
1189.6
0.00
Jul. 09

283.799
283.799
(51)
70
NS
119.33
1111.1
13.93
Jul. 10e

283.799
283.799
90
127
82.4%
211.03
1174.8
38.11
Jul. 11e

283.799
283.799
141
178
40.2%
262.48
1273.0
53.44
Jul. 12e

283.799
283.799
167
204
14.4%
288.61
1384.1
61.15
Jul. 13e

9.9x
62%
7.5x
11.3%
1.82x
3.8%
37.4%
0.52x
7.5x
9.0x
8.5x
1.3x
4,236
3,234
834
168

10.5x
75%
7.8x
1.0%
2.40x
3.0%
31.8%
0.56x
6.8x
9.1x
29.9x
1.6x
5,663
4,559
948
158

12.4x
94%
9.2x
5.7%
2.60x
2.6%
32.1%
0.66x
9.0x
10.5x
14.1x
1.7x
7,413
6,012
1,179
227

12.8x
116%
9.3x
3.3%
2.83x
2.4%
30.3%
0.69x
9.6x
11.0x
19.3x
1.7x
9,744
7,323
2,214
228

14.0x
128%
9.1x
9.5%
2.36x
2.6%
37.0%
0.68x
9.9x
12.5x
11.8x
1.5x
10,993
8,135
2,717
153

35.7x
266%
6.0x
16.2%
1.31x
1.7%
60.0%
0.44x
7.9x
12.0x
7.7x
1.0x
7,283
4,386
2,719
234

NC
NC
NC
35.2%
1.07x
0.0%
(0.0%)
0.25x
5.0x
NC
3.5x
0.5x
3,634
2,414
1,209
333

23.5x
239%
13.7x
4.8%
1.48x
0.8%
20.0%
0.43x
8.2x
32.6x
20.1x
0.9x
5,704
4,651
1,042
333

12.9x
153%
7.8x
6.6%
1.40x
2.3%
30.0%
0.40x
6.1x
8.8x
9.7x
0.9x
5,465
4,651
803
333

9.2x
120%
6.2x
6.6%
1.29x
3.3%
30.0%
0.35x
4.8x
6.7x
8.6x
0.8x
5,266
4,651
604
333

5.7x
7.8%
1.18x
3.7%
30.0%
0.31x
4.3x
5.9x
7.4x
0.8x
5,046
4,651
383
333

7,968
556
(93)
464
464
(27)
0
(123)

8,221
566
(93)
473
473
(17)
0
(128)

2
Jul. 04
10,128
835
(108)
619
619
(21)
0
(162)

6
Jul. 05
11,256
822
(114)
708
702
(37)
0
(186)

12
Jul. 07
16,221
1,105
(182)
877
753
(119)
0
(160)
0
474
582
Jul. 07
935
170
(47)
241
1,299
(366)
933
(163)
770
(1,294)
(454)
673
(198)
503
895
Jul. 07
5,483
2,005
7,488
3,451

56
Jul. 08
16,549
921
(242)
607
301
(156)
0
(71)
0
74
123
Jul. 08
543
378
43
298
1,262
(317)
945
(234)
711
(99)
(403)
4
(215)
2
730
Jul. 08
5,691
1,700
7,391
3,359

322
Jul. 09
14,441
733
(286)
(11)
(606)
(145)
(456)
0
34
0
(1,173)
(374)
Jul. 09
(320)
1,053
(617)
1,084
1,200
(157)
1,043
(192)
851
(11)
(324)
994
0
(1,510)
(76)
Jul. 09
5,355
1,599
6,954
3,376

322
Jul. 10e
13,128
700
(262)
175
1
(83)
(25)
0
(38)
0
(145)
198
Jul. 10e
263
437
(303)
7
403
(120)
283
(58)
225
32
0
0
0
(257)
339
Jul. 10e
4,919
1,592
6,511
3,153

322
Jul. 11e
13,815
894
(276)
618
514
(68)
(3)
0
(187)

322
Jul. 12e
14,998
1,088
(299)
789
684
(53)
20
0
(250)

516
2,467
Jul. 07

649
2,469
Jul. 08

898
959
Jul. 09

No of shares year end, basic, (m)

137.727
137.967
138.399
Average no of shares, diluted, excl. treasury stocks (m)
137.727
137.967
138.399
EPS reported
140
134
208
EPS restated
169
179
228
% change
13.1%
5.8%
26.9%
CFPS
234.05
269.48
299.35
Book value (BVPS) (a)
960.7
1084.6
1156.0
Net dividend
64.05
70.47
78.81
STOCKMARKET RATIOS
YEARLY AVERAGE PRICES for end Jul. 00 to Jul. 09
P / E (P/ EPS restated)
P / E relative to DJ STOXX50
P / CF
FCF yield
P / BVPS
Net yield
Payout
EV / Sales
EV / Restated EBITDA
EV / Restated EBIT
EV / OpFCF
EV / Capital employed (incl. gross goodwill)
ENTERPRISE VALUE (GBPm)
Market cap
+ Adjusted net debt
+ Other liabilities and commitments
+ Revalued minority interests
- Revalued investments
P & L HIGHLIGHTS (GBPm)
Sales
Restated EBITDA (b)
Depreciation
Restated EBIT (b) (**)
Reported operating profit (loss)
Net financial income (charges)
Affiliates
Other
Tax
Minorities
Goodwill amortisation
Net attributable profit reported
Net attributable profit restated (c)
CASH FLOW HIGHLIGHTS (GBPm)
EBITDA (reported)
EBITDA adjustment (b)
Other items
Change in WCR
Operating cash flow
Capex
Operating free cash flow (OpFCF)
Net financial items + tax paid
Free cash flow
Net financial investments & acquisitions
Other
Capital increase (decrease)
Dividends paid
Increase (decrease) in net financial debt
Cash flow, group share
BALANCE SHEET HIGHLIGHTS (GBPm)
Fixed operating assets, incl. gross goodwill
WCR
Capital employed, incl. gross goodwill
Shareholders' funds, group share
Minorities
Provisions/ Other liabilities
Net financial debt (cash)
FINANCIAL RATIOS (%)

8.5*CFPS

1 646.3

9.7x
48%
7.0x
5.6%
1.71x
3.9%
37.8%
0.43x
6.0x
7.2x
10.5x
1.0x
2,770
2,267
462
41

9.9x
41%
6.6x
11.0%
1.64x
4.0%
39.3%
0.45x
6.4x
7.8x
8.1x
1.1x
3,210
2,453
708
50

10.5x
47%
8.0x
10.3%
2.07x
3.3%
34.6%
0.50x
7.1x
8.5x
8.2x
1.3x
3,961
3,309
555
97

0
0
Switch to IFRS data from FY ended 07/05
6,403
7,195
460
500
(74)
(85)
386
414
386
414
(28)
(35)
(43)
(70)
(108)
(106)
(
0
(13)
(18)
194
185
221
230
Jul. 00
Jul. 01
460
500
0
0
0
0
(70)
18
390
518
(126)
(121)
264
397
(137)
(128)
128
269
(154)
(376)
(45)
(55)
2
6
(81)
(91)
151
246
322
372
Jul. 00
Jul. 01
1,762
1,823
1,048
1,223
2,811
3,046
1,323
1,496

(27)
288
288
Jul. 02
556
0
0
28
584
(100)
484
(142)
342
(159)
62
8
(100)
(153)
414
Jul. 02
1,813
1,187
3,000
1,600

(30)
298
298
Jul. 03
566
0
0
42
608
(108)
500
(133)
367
(504)
(37)
9
(113)
279
433
Jul. 03
1,947
1,348
3,295
1,774

(39)
397
397
Jul. 04
727
108
(107)
(402)
325
(136)
189
(142)
48
(123)
80
17
(136)
114
586
Jul. 04
1,957
1,621
3,578
1,902

479
483
Jul. 05
816
6
12
(68)
765
(239)
526
(181)
346
(327)
(118)
14
(145)
231
652
Jul. 05
2,458
1,924
4,382
2,314

21
Jul. 06
14,158
1,016
(134)
882
834
(65)
0
(232)
0
537
571
Jul. 06
968
48
31
(197)
850
(346)
504
(263)
241
(791)
(77)
4
(162)
785
784
Jul. 06
3,324
2,245
5,569
2,592

71
462
Jul. 00

117
555
Jul. 02

144
834
Jul. 03

157
948
Jul. 04

345
1,179
Jul. 05

383
1,964
Jul. 06

86
708
Jul. 01

Sales (% change)
16.3%
12.4%
10.7%
3.2%
23.2%
11.1%
25.8%
14.6%
2.0%
(12.7%)
Organic sales growth
0.0%
0.8%
1.3%
8.8%
8.8%
11.2%
0.3%
(5.0%)
(16.3%)
Restated EBIT (% change) (**)
21.3%
7.4%
12.0%
1.9%
30.9%
14.3%
24.6%
(0.6%)
(30.8%)
NS
Restated attributable net profit (% change) (**)
13.3%
6.0%
27.3%
4.3%
32.8%
10.9%
18.0%
2.0%
(78.9%)
NS
Personnel costs / Sales
12.9%
13.1%
13.0%
13.2%
13.2%
13.6%
13.7%
13.7%
13.7%
13.7%
Restated EBITDA margin
7.2%
6.9%
7.0%
6.9%
8.2%
7.3%
7.2%
6.8%
5.6%
5.1%
Restated EBIT margin
6.0%
5.8%
5.8%
5.8%
6.1%
6.3%
6.2%
5.4%
3.7%
(0.1%)
Tax rate
34.4%
34.3%
28.0%
28.0%
27.1%
28.0%
30.2%
25.2%
49.0%
NC
Net margin
3.0%
2.6%
3.6%
3.6%
3.9%
4.3%
3.8%
2.9%
0.4%
(8.1%)
Capex / Sales
2.0%
1.7%
1.3%
1.3%
1.3%
2.1%
2.4%
2.3%
1.9%
1.1%
OpFCF / Sales
4.1%
5.5%
6.1%
6.1%
1.9%
4.7%
3.6%
5.8%
5.7%
7.2%
WCR / Sales
16.4%
17.0%
14.9%
16.4%
16.0%
17.1%
15.9%
12.4%
10.3%
11.1%
Capital employed (excl. gross goodwill) / Sales
24.7%
25.2%
22.2%
25.1%
23.1%
25.0%
24.0%
23.0%
21.7%
22.7%
ROE (before goodwill)
17.6%
16.5%
19.7%
18.5%
22.9%
20.9%
22.0%
16.9%
3.7%
(11.1%)
Gearing
35%
47%
35%
47%
50%
51%
85%
79%
81%
36%
EBITDA / Financial charges
16.2x
14.2x
21.0x
33.3x
39.5x
22.3x
15.6x
9.3x
5.9x
5.1x
Adjusted financial debt / EBITDA
1.0x
1.4x
1.0x
1.5x
1.1x
1.4x
2.2x
2.5x
3.0x
1.6x
ROCE, excl. gross goodwill
15.7%
14.5%
18.4%
16.0%
18.8%
18.1%
18.1%
17.6%
12.5%
(0.3%)
ROCE, incl. gross goodwill
8.8%
8.6%
10.9%
10.1%
12.3%
11.6%
11.1%
8.8%
6.1%
(0.2%)
WACC
7.5%
7.8%
8.1%
7.8%
8.1%
7.2%
6.9%
7.1%
7.3%
7.5%
Average number of employees
33,385
34,734
37,136
39,299
48,379
53,678
65,223
81,100
74,000
(a) Intangibles: GBP2,223.00m, or GBP8p per share.
(b) adjusted for capital gains/losses, impairment charges, exceptional restructuring charges, capitalized R&D, pension charge replaced by service cost
(c) adj.for capital gains losses, imp.charges, capitalized R&D, am. of intangibles from M&A, exceptional restructuring, (*) In listing currency, with div. reinvested, (**) also adjusted for am. of intangibles from M&A,

LONDON
PARIS
BRUSSELS
FRANKFURT
GENEVA

(+44) 207 039 9400

(+33) 1 44 95 40 00
(+32) 2 400 3750
(+49) 69 42 72 97 300
(+41) 22 718 65 65

8.0x

256
360
Jul. 11e
790
104
(40)
(63)
791
(230)
561
(255)
306
0
0
0
(76)
(231)
599
Jul. 11e
4,768
1,655
6,424
3,334

401
506
Jul. 12e
984
104
(40)
(108)
940
(330)
610
(303)
307
0
0
0
(123)
(184)
745
Jul. 12e
4,695
1,763
6,458
3,613

322
Jul. 13e
16,135
1,174
(322)
851
747
(38)
42
0
(277)
0
474
578
Jul. 13e
1,069
104
(40)
(104)
1,030
(350)
680
(315)
365
0
0
0
(159)
(206)
819
Jul. 13e
4,618
1,867
6,486
3,928

1,417
702
Jul. 10e

1,377
471
Jul. 11e

1,337
287
Jul. 12e

1,297
81
Jul. 13e

(9.1%)
(8.8%)
NS
NS
13.7%
5.3%
1.3%
NC
(1.1%)
0.9%
2.2%
12.1%
23.6%
6.3%
33%
8.4x
1.5x

5.2%
5.5%
253.7%
82.4%
13.7%
6.5%
4.5%
41.9%
1.9%
1.7%
4.1%
12.0%
22.6%
10.8%
24%
13.1x
0.9x
13.1%
6.4%

8.6%
8.4%
27.6%
40.2%
13.7%
7.3%
5.3%
39.6%
2.7%
2.2%
4.1%
11.8%
21.7%
14.0%
17%
20.5x
0.6x
16.0%
8.1%

7.6%
7.4%
8.0%
14.4%
13.7%
7.3%
5.3%
39.0%
2.9%
2.2%
4.2%
11.6%
21.0%
14.7%
10%
30.9x
0.3x
16.6%
8.7%

or for am. of gwill for pre IFRS years

MILAN
NEW YORK
SINGAPORE
ZURICH

(+39) 02 89 63 17 13
(+1) 212 634 4990
(+65) 6212 9055
(+41) 1 228 66 00