SIG plc (SHI) Earnings Call Transcript & Summary

So good afternoon, everybody, and welcome to our short capital markets event here for SIG. Welcome to everybody in the room. Thank you for taking the time and the trouble to come and see us in person and also welcome to everybody who is watching the webcast from somewhere else. I'm Gavin Slark, I'm the CEO. I think as most of you -- it's great to see so many familiar faces, but most of you know, I've been the CEO here now for about 9 months. And it just felt like an appropriate time to sort of spend a little bit more time giving a little bit more airtime and conversation points about various parts of the business. One little piece of housekeeping. There are no fire drills planned for this afternoon. So if you do hear the alarm, then obviously, we have fire exits there and there. I believe it's a good etiquette in these moments to let the CEO go first. So just bear that in mind. I would also just like to clarify that there's been no trading update today. We did put a trading update out just a few weeks ago. We have nothing further to add to that trading update. I'm also very aware and I think we all understand the sort of short-term market pressures that are out there at the moment and we've deliberately today focused on medium-term opportunities, medium-term margin targets rather than get embroiled in short-term market pressures. I think most of you will be aware that I've done sort of 2 results presentations since I joined SIG. But at results presentations, it can be really quite difficult once you go beyond the results to spend time talking about what we might consider to be the more interesting part of the business, and that really is what we really want to try and do today. And there's something else that I really want to try and achieve, which is to break the mental default that I know still exists in some people, which is the sort of SIG really is SIG, insulation, dry lining, large contractors, housebuilders, U.K. because there is an awful lot more to SIG than just those particular elements. I'm joined today in the room by a number of our leadership team. I think many of you will know Ian Ashton, who's our CFO. Ian has been in place now for about 3 years. Some of the people in the room will be presenting, some will be available at the end, and we've got some refreshments upstairs, if you want to pigeon hold them on a 1 to 1. Julie Armstrong, who is our Chief People Officer, will be presenting this afternoon, along with Julie Westcott, who is our Group Head of HSE. Julien Montero is the Managing Director of our French business, and he will also be taking the stage this afternoon; as well Marcin Szczygiel, who is the Managing Director of our Polish business, both of them will be presenting in English, which is great for us. But I'm also hugely grateful and appreciative for them presenting to this audience in a language that isn't their first language. So thank you for that, guys. We've also got in the room David Hope, who is our who is the Managing Director of our specialist markets business. David isn't presenting, but obviously, you can talk to David later. Along with Alfons Horn, Alfons is the Managing Director of our German business. Both of these guys have got many, many years of experience within SIG and the industry as a whole. Both actually left SIG for a short period of time and then over the last couple of years have been persuaded to come back and pick up the baton and take us on the next chapter of growth. We've also got in the room our Non-Executive Chairman, Andrew Allner, who is down the front of the room; and also our Senior Independent Director, Kath Durrant, who's at the back of the room, both of whom again will be available if you want to talk to them after the presentations. In terms of the agenda for this afternoon, really, it's about putting some very simple messages out there and using real-life examples of what we do as a group. We'll start off with an overview that will involve myself and Ian, and Julie W. and Julie A. And then what we've done is try to break the afternoon into 4 very distinct sections, which we'll explain more as we go through but grow, execute, modernize and specialize. Hopefully, our 4 words that when we get to the end of the afternoon will really resonate with you. At the end of the afternoon, we will have time for Q&A. Obviously, depending on how interesting the q's are depending on how interesting the a's are, but we'll try and make that as interactive as we possibly can. Then as I said, we've got some refreshments upstairs for about an hour at the end of the presentation. So if you want to stay and have a drink with us, please feel free, and all the members of the leadership team will be around this afternoon. We will build into the mid of the afternoon, just a 15-minute comfort break. I'm very conscious of sitting in one place for a long time. We're not doing a full on coffee break, but it will be a comfort break. You can get up and stretch your legs, and at least break the afternoon for 15 minutes. I think in terms of setting the background for what we want to talk about this afternoon, it's just really important to recognize what SIG is and where the business is today. And some of you will have seen this slide before at results presentations, but I think it's really important to reinforce the fact that the profit within SIG is not U.K. centric. In fact, if you look at the pie chart on the right-hand side there, you'll see that our largest single profit earning geography is France, 42%. Then the U.K. at 29%, followed by Germany at 22%. So actually, from a geographical point of view, our profit earnings are really quite well spread. If you look at the map on the left-hand side, and we'll come back to some of these themes again as the afternoon goes on. The reason some are labeled as SIG and some are not is just to reinforce the point, we don't trade everywhere as SIG. If you look at the U.K., predominantly our distribution businesses are branded as SIG, but we also have a number of specialized niche businesses that have different trading names as we do in Ireland as well. If you look at the Benelux region, again, principally, it's branded as SIG. And in Poland, as Marcin will talk to you about later on, that is branded as SIG Polska. But then when you start looking at France and Germany, we don't actually trade as SIG in either France or Germany. What we have got is 2 really strong indigenous brands in France with Lariviere, which is the roofing specialist business and LiTT, which is the Interiors business, which Julien will talk more about later on. And then in Germany, we trade predominantly as WeGo with a specialist technical insulation brand, which we have as VTI. So again, it's just setting that background and the recognition that although it's SIG PLC, everywhere that we trade, we don't actually trade as SIG. As we go through the afternoon as well, you'll realize that these businesses, these OpCos as we refer to them, they're at different points in their evolution and they're at different levels of maturity. Some have had their leadership in place for quite a long time. Some have had the leadership in place for quite a short time. And as you go through, you'll see that not every part of the group is at the same point in its evolution. Talking of businesses that are doing well, businesses that we see as potential growth engines. We've got Poland and France coming to the stage later on this afternoon, and they will talk to you specifically about their businesses, but we also recognized quite openly that our U.K. Interiors business, as an example, and our Benelux business are still very much in turnaround mode as opposed to being necessarily short-term engines for significant growth. So what about our overall vision and our framework? Well, very simply, we want to be the best provider of specialist construction and insulation products in Europe. And I appreciate, best is quite a loose measure and the way that we look at this, how do you recognize as being the best. It's a customer-driven measure. So what we want is when someone says to our customers, who's your best supplier? Their answer is SIG. And best can be a number of different things. It can be based around service. It can be based around product assortment. It can be based around the way we run logistics and our delivery service. It can be based around technical advice. It can be based around price. But just that very soft measure of being able to say to our customers, we want to be the best provider of these product sectors that we possibly can be. The objective of being a partner of choice for specialist contractors really plays into what I believe is a cultural strong point of our business, which is about being a branch-based sales-led customer-focused business. And one of the misconception sometimes about SIG is that the majority of our customers are large national contractors. Actually, the vast majority of our customers are small local businesses. And that's why having a culture of being a decentralized, federated business with local teams looking after local customers is really important in how we strive for the growth going forward and how we intend to be that customer's provider of choice. Improving on our operating performance is obviously key, and we'll talk about 4 main pillars that we believe are absolutely critical to growing towards the 5% margin target that we've put out publicly before, we have reiterated publicly before, and we reiterate again today. But if you think about the agenda that I showed you just a couple of moments ago, and those 4 key words of grow, execute, modernize and specialize, that is really what we're building the foundations of the future of the group around growing forward. And we'll also talk about growing sustainably and as a responsible business, and we will be reiterating our 5 key ESG commitments as we go through the afternoon. A question that's often asked in this particular sector of the construction market is, is the distributor still relevant? Does it still have a place in the market? Is it important to both the manufacturers and the customers? What we're trying to show on this slide here, pictorially, is that actually we believe the distributor still plays a really critical role in the movement of materials across the whole of the construction industry. And it's about connecting quite a diverse supplier base and connecting them with thousands of customers across different European markets who actually specialize in a number of different activities. And that's where we believe we can bring real value as well as having that winning mentality in local branches, delivering great service, making sure that our logistics is slick and efficient. In short, as a distributor, we need to be brilliant at what we do on a local level with each of our individual customers. And that's why we believe that the distributor absolutely has a role to play in the market now and increasingly going forward. In terms of being a partner of choice for different specialist contractors, we're looking at what we believe differentiates SIG, perhaps from some of the general merchants. Being a specialist, we see is really important. And in those different specialist areas, we've got some very strong market positions that I think sets us apart on Day 1. We've also got specialist knowledge not only in distribution but also in manufacturing and in fabrication. And we will talk some more about the manufacturing and fabrication businesses that we have which we believe real value and points of differentiation for us as a group. In terms of the end markets, just thinking back to that map that I showed you just a couple of moments ago, we obviously have some quite significant natural geographic diversification. Broadly, our business is also split 50-50 between nonresidential and residential. It's also broadly split 50-50 between new build and between RMI. And it's around about 65% towards the Interior of buildings and about 35% towards the Exterior. What that means for us is that we're not overly exposed to any 1 geography, any 1 end market, any 1 customer type. So I think that natural diversification as well as we know that the market needs to recover going forward, it gives us various touch points in the recovery of the market and means that we're not overly exposed in any 1 sector. That really is my scene setting. That's what I wanted to do just for the first 5 minutes of the presentation. But just to give you a little bit of sort of financial background to where we as a group, I'll pass you over to Ian.

Thank you, Gavin. Good afternoon, everybody. So I would just like to provide now the group level financial backdrop to the rest of the presentations that you're going to see today. Firstly, though, I will just cover off the very near term. We published our Q3 trading update on the 12th of October, as most of you will know. And as Gavin said, the full year guidance we gave at that point has not changed, just to be clear. I think whilst as you all know, the market is tough at present. We're very confident we're continuing to do well against the market. And I think the recent numbers we reported demonstrate that fairly clearly. We're managing through what's immediately in front of us. During what's obviously a low point in the cycle, and that includes managing costs accordingly, which, of course, we'll talk about a bit more when we publish results in the new year. One of the benefits, we believe, of the stronger operational discipline and focus that's been brought to the group over the last couple of years is that we are better able to flex the business to adapt to changing market conditions and make any trade-offs that frankly always exist between near and longer term in an informed way. We do remain very focused on making sure that we can take advantage of the opportunities ahead of us to create long-term value, and that's the main focus of today's presentations. Our medium-term 5% margin target is a key milestone for the group, and this slide shows why. Getting to 5% can and will provide a substantial shift in SIG's value creation. Today, we're at GBP 2.8 billion of sales at around 2% margin as of H1 this year, the latter reflecting in part, the current softness in the market. 300 bps of margin may not sound a substantial step but the financial effects are getting from 2% to 5% on roughly GBP 3 billion of sales would be transformational for SIG as we show on the right-hand side. So specifically, it will drive firstly, a significant increase in earnings. So GBP 150 million of EBIT, for example, will be nearly 3x where current consensus has us finishing this year. Secondly, meaningful free cash flow. As a business, we're not capital intensive, we have a strong focus on working capital discipline and all of that means that beyond 3% margins were sustainably free cash generative with every percentage of additional margin above that, largely dropping through to cash. These higher profit and cash flow numbers will, of course, build up and be delivered over time as the margin climbs to 5%. And what that, in turn, enables is an increasingly more dynamic capital allocation strategy, which can accelerate performance through investment including potential M&A. And what you'll see today is more detail and color on the key building blocks that get us from A to B. Later on, I'll present that bridge, and we'll also share how we expect the different businesses in the group to grow their margins over that time. Next, a reminder of our current balance sheet position. This is at midyear this year, as we announced in August, with 2022 year-end numbers also for comparison. We have good liquidity, including a currently undrawn RCF facility of GBP 90 million. And as we said before, we expect the cash number to finish higher at the year-end than at H1 due to the normal seasonality in our working capital. Our profitability in the current climate this year means that leverage has risen to north of 3x on a post-IFRS 16 basis, and we expect that will remain the case at the full year. Increasing margin and profitability, i.e., EBITDA will be the main driver that gets leverage back down to our target of 2.5x, and we remain very focused on delivering this. And finally, looking at the right-hand side of the slide, we have financing in place until late 2026 with our EUR 300 million bond at a fixed rate of 5.25%. Our approach to capital allocation has remained consistent for some time. I'm sure some, if not all of you will recognize this slide, I'll just address the key points. Our focus has been and remains on driving organic performance across our existing branch network and assets, and that's what you'll hear about today. There's a significant ongoing opportunity to enhance the capability of the business, and we invest selectively and appropriately in those organic initiatives that meet our returns objectives. We do and will continue to look at selective bolt-on M&A in accretive target categories and in businesses that are performing well. On dividends, we want an intent to reinstate a dividend when we feel we sensibly can and sensibly is defined as shown on here. Finally, the underpins at the foot of the page are important. They don't mean that we would never do any small M&A before we get to the leverage targets as an example. But of course, we take our liquidity, leverage and indeed credit ratings very much into account when considering any deployment of capital. And just for those of you newer to the group, I would just mention finally that our banking and bond documents as well as our core reporting are on a post-IFRS 16 basis. And of course, IFRS 16 leases on properties and fleet are quite significant in a distribution business like ours. So that's the financial backdrop to what you'll hear today. I'll talk later with Marcin on productivity and on the path to that group 5% margin. But for now, we'll hand over to Julie A.

Thanks, Ian. Well, good afternoon, everybody. In this section, Julie and I will talk to you about 3 of our 5 commitments within our ESG strategy, being health and safety, carbon and employer of choice, the latter of which I'll focus on first. When I started with SIG in 2021, the strategic focus within the organization was mainly on the commercial and operational aspects of the business and rebuilding it around a better strategy. However, we knew that to achieve our strategic goals, we also needed to reinvest in and refocus on our people being a key enabler to our success. So what we have now in place is a structured framework around our people agenda that provides focus for delivery and sets consistent standards. Our long-term aspiration is to be an employer of choice in our sector. This means that if people have the choice over their next employer, we want them to choose SIG. We want them to enjoy working here to feel committed, engaged and, of course, feel proud. Employee engagement is a core part of building solid foundations that any business needs, including SIG to perform well. We know our customers want policy products quickly and at their convenience. This means that this business is fundamentally one that depends on the ability of its people and with them being highly engaged to deliver that service. Simply put, the aim of the people agenda in SIG is about having really engaged people, delivering really great service at the right time and, of course, at the right cost. We also need great leaders in our branches across our regions and our countries to support our path to stronger financial performance. Employee engagement depends on a number of things. This includes working in a safe environment, both psychologically where people can be themselves as well as, of course, physically. Additionally, having great leadership in place that supports and recognizes their people, being in an organization that makes their people feel included, where they can learn and grow as well as essentially having the right tools to do the job, also important. So therefore, we focused on 4 key areas of our people strategy shown on the left-hand side slide. These are dedicated to employee engagement and recognition programs to drive commitment, structured learning and development to build talent, skills and specialist knowledge. Thirdly, we realigned reward structures to drive performance and behaviors with outputs that we need. And finally, we're building a more inclusive, modern and open culture. As a result, these have supported the achievement of good levels of engagement in our people, where we are either close to at or exceeding benchmark levels today across most areas across the group on engagement. Turning to the next slide. As we continue towards being an employer of choice, getting external validation that we're making good progress on our path is also an important reference point for us. On the left, you can see we received top company award from Kununu in Germany this year. Kununu is a German employee raising agency that -- the award is based on independent [indiscernible] by employees and job applicants. In the photo, you can see Alfons Horn, MD of our Germany business. Gavin also mentioned he is also here today, pictured alongside our German HR Director, German -- Christine [ Kaiser ]. Now Germany has made really good progress in people engagement over the last couple of years. And the team has done a great job in rebuilding the business with a culture and a passion to succeed. Another employee vote led certificate based on experiences of culture and environment is one that Poland won this year, which is Great Place to Work certificate. And finally, our French business is in the process of achieving top employer 23 certification, which is based on a 3-year continuous process improvement assessment. And we'll find out the results in January '24, fingers crossed. Before I hand you over to Julie in summary on people, I hope that you will see from many of the presentations across this afternoon that people really are a key to our success. SIG has made good progress on the people agenda. Certainly, we have more to do. We are definitely not there yet. However, it's great to be part of the company and leadership team that places people at the heart of its mission. Anyway, thank you very much. I'll now hand you over to Julie.

Good afternoon, everybody. My name is Julie Westcott, otherwise known as Julie W., and I'm responsible for Health, Safety and Environmental SIG, joining the business just over a year ago now. I'm here to take you through 2 more of our sustainability commitments starting with Health and Safety. SIG is committed to being the Health and Safety leader in our industry. And that's because we believe that a safe, healthy workplace is the cornerstone of a sustainable, profitable business. But it also gives us competitive advantage. Firstly, ensuring our people, our safe and healthy at work is essential to their recruitment, retention and engagement. And as per our people commitments, this is an enabler for our strategic goals. Secondly, across Europe, our customer base includes large national key account contractors. These customers are increasingly benchmarking their suppliers on health and safety, especially those working on large public sector, renovation or infrastructure projects which is a key end market for SIG. Being the leader in Health and Safety contributes to us being the partner of choice for those specialist contractors. So how do we perform on HSE? How do we compare to the industry today? And where are we aiming to get to? Well, as you can see on the slide, we have over 7,000 employees engaged in working for us in over 440 branches across Europe. As a distribution business with some specialized fabrication and manufacturing, compared to other industries, actually, SIG has a relatively lower risk profile. Trips and handling are our most frequent incidents. However, we do have vehicles and pedestrians interfacing, and they're interfacing in our sites, at our delivery locations, on the road and in construction locations. And this interface remains our highest potential risk. Within our sector, our health and safety performance today is in line with the rest of the distribution industry, but we aspire to be that leader. We have made steady progress with our performance. But to build on this, this year, we introduced our new Everyone Safe, Everyday strategy across our operations. It's been translated into all our languages, and you can see the German up on the screen. It's up there because I can attempt to pronounce that unlike the Polish version. And if you want to know what that is, you need to speak to Marcin later. Our Alle sicher, jeden Tag strategy aims to improve our performance by focusing on 3 key areas. Firstly, visible felt leadership, where regular feedback on demonstrable leadership is gathered via our employee engagement survey. Secondly, stakeholder engagement, where -- stakeholder engagement, focusing on employee-led near-miss hazard and safety observation reporting. And of course, the continuous improvement of our best practice systems and processes supported by group-wide working groups and governed by regular HSE assessments. The implementation of this strategy is already seeing results as we journey to being the health and safety leader in our industry. So moving from people to planet. At SIG, we understand our impact and our role in building a sustainable future for everybody. We're aiming to reach net zero carbon by 2030. This target includes reducing our Scope 1 direct, Scope 2 indirect and business travel emissions by 80%. To put that into context, 80% of our emissions come from our fleet with just over 1/3 from heavy goods vehicles and just under 1/3 each from forklift trucks and cars. Currently, 1/3 of our total fleet is electric or hybrid. Reducing emissions from our fleet is central to achieving our targets. So along with the rest of the industry, we're seeking alternative fuels to decarbonize our commercial fleet. These solutions are heavily dependent on available technology, innovation and infrastructure. So working together with local governments, vehicle manufacturers and innovators is essential. We will continue to take an incremental approach to our commitments in this area as technology develops and matures and the costs evolve. This is especially important as different countries are planning contrasting strategies for alternative fuel innovation and infrastructure. Currently, we're running selective trials of hydrogen, electric, CNG, biogas and HVO fueled vehicles throughout the group. In the photos, you can see our hydrogen H2 truck from Germany, and our biogas Lariviere truck below that. We also have electric Moffitts, which are currently being trialed throughout our geographies. And for those that don't know, a MOFFETT is an onboard forklift truck, which connects and disconnects from the trailer when we're making deliveries. And of course, we have electric fork trucks and increasing numbers throughout our geographies. So in summary, we are committed to and making good progress to reduce our carbon footprint as we bring our products to our customers. And SIG will continue to grow sustainably as a responsible business. Thank you for your time, and I'll now pass you back to Gavin.

Thank you to both Julie's. That really is about giving you some background and context as to where we see the business today. But critically, to achieve the medium-term targets that we've got, we absolutely recognize and we appreciate -- this is about improving our operating performance as a business. And this now really is how the rest of the afternoon is going to be structured with our sort of 4 pillars, 4 key blocks, 4 gems, whatever you want to call them, but by using these 4 key headings, this really is about making things simple, making things understandable about how we drive future value. With growth, it's about continuing above-market growth. And we do believe, as Ian said earlier, at the moment, we are outperforming the market in most of the geographies in which we operate. Under execute, that's about strengthening the execution and margin performance across all of the businesses. And this is what I mentioned earlier on. This is about being brilliant at what we do as a distributor. Under modernize, greater productivity through modernization, modernization in working practices, but also the utilization of digital technology to make our business more effective, more efficient, generate better returns. And also under specialized, accelerating the growth in more specialist higher-returning areas. And we do believe, and we'll talk more about this as the afternoon goes on. There is a real opportunity for us in more specialists, more technical, more niche markets. So let's start with Grow. What does Grow mean for us? And how do we continue above market growth? It's a lovely combination of the Adidas 3 stripes and the Nike Swoosh base. So we've got the kind of the adding Adi-Nike SIG Swoosh. Gaining market share, it's really important for us. It's about outperforming those markets and about making sure that we are that supplier of choice. But what's really important for us is this is not about market share growth at any cost. This is about making sure that we're managing our processes well. We're managing our costs well, we're managing our margins and making sure that we're delivering value for our customers and our stakeholders. In terms of regulation, we do believe that over the coming years, there will be a regulatory-driven tailwind in a number of the European markets in which we operate. The demand for better buildings, the demand for decarbonization of the built environment, the demand for better energy efficiency absolutely plays into some of the core product sectors in which we operate. And of course, also, there is a fundamental undersupply of housing right the way across Europe. In terms of the industry growth, whether you're looking at GDP, whether you're looking at growth in new build markets, we do believe that construction and construction products is -- always has been a cyclical market. And at some point, we have got short-term pressures now, but we absolutely believe that, that market will turn. And critically for us over that period of time now where maybe the market is going along the bottom, we need to make sure that we're as positioned as well as we possibly can be to get disproportionate benefit when that market does turn. And also importantly, that little bubble on the right-hand side there, that 80% of the revenue across the SIG Group is driven from insulation and products that impact the building envelope. Our market positions are really strong. One thing I would stress here is that actually the market data across different geographies isn't always collated in the same way. And I would say, in some cases, it's not as reliable as others. So these market positions that we've got on here, just to be clear, these are based on our data and our assumptions. So just bear that in mind when you're looking here. So in France, the #1 national roofing specialist Lariviere, a critical market leader in that French market and also #2 in France in terms of Interiors with LiTT. In the U.K., our SIG roofing business is the #1 specialist roofing distributor in the U.K. market. And then SIG distribution or SIG Interiors, as some of you may know it, we believe, is the #2 in the distribution of insulation and dry lining in the U.K. In Ireland, #1 in terms of distribution of insulation and in the top 3 in terms of other interiors, we also have within Ireland, a couple of really strong but small niche businesses. We are the #1 installer of kitchens and bathrooms as an example, in Northern Ireland. We also have a market-leading specialist painting contracting business, which is called JS McCarthy that I wouldn't have anticipated anybody has heard of, but it is a profitable, good contributory business for us in Ireland. In Poland, Marcin will talk to you later, but we believe we are #2 in both Insulation and in the overall Interiors market. In Germany, we've been in the top 3 of dry lining, ceilings and insulation and the market leader in terms of specialist flooring systems. It's really interesting, I think, to also bear in mind when you look at those businesses, they're not all the same. So for instance, in the U.K., we're very clearly into roofing, we're very clearly into interiors. In France, very clear and distinct roofing and interiors business. In Germany, the mix is slightly different, really strong in interiors, really strong in specialist flooring systems. But as an example, in Germany, we don't do roofing at all. And then in Benelux, we would be in the top 3 of overall distributors for interiors and insulation. And I'll talk a little bit more about Benelux later on because recognizing, as I said earlier, that business is very much in a recovery mode. Trying to find a simple illustration as to where our products can actually impact the building. And I think this hopefully does it pretty well. If you look on the right-hand side and you look at exteriors, historically, our roofing businesses were really based around flat roof and pitched roof, but increasingly now, solar is playing an important part in terms of our overall roofing business. And also on the exteriors with facades, so facades, some in various markets might recognize that more as exterior wall insulation and cladding that is actually put on buildings to aid the insulation. But that's all part of our Exteriors businesses. And then on Interiors, predominantly, that is about building insulation, dry lining, ceilings and flooring systems. And then we'll also talk more in a short while about construction accessories, and that really impacts the whole of the building. But we just really try to show in 1 illustration where the products in which we operate actually impact the built environment. Some of you who were with us at the results presentation will have seen this slide before. But this is about where we believe regulation and regulatory tailwinds will actually help us going forward. The examples down the left-hand column are really just to show you the kind of things that are happening in various geographies and various different governments. But if you look at that central column and you look at the headline points in there, those are being driven by legislation at different points of evolution by different geographic government but that is really important to us going forward because it is about us being much better at what we do. It's about developing and evolving as a distributor, but really taking advantage of some of these regulatory tailwinds that will come with us. So the demand for that commercial building retrofit, making those buildings more energy efficient, making them better. Public buildings, social housing, schools, hospitals, prisons all getting a lot of attention in terms of refit and making them more energy efficient. Building standards and the demand for better quality buildings really plays into where we are as well. And of course, as I mentioned a moment ago, the evolution of solar and other energy sources not only impacts what we can sell, but also if you look at alternative heat sources, particularly in residential settings, it's not that we're going to suddenly get into selling heat pumps, but actually, when you look at those alternative heat sources, managing the heat inside the home and managing the energy efficiency becomes even more important as domestic heating evolves. So I think there are across a number of the geographies in which we operate, some regulatory tailwinds now and coming in the future that not only will help us, but we also need to be ready to take advantage of. Insulation is where the business grew out of. That is where SIG started, and there's a number of different aspects to insulation. It's quite difficult to see from the pictures I appreciate. But if you look at structural insulation, that is about walls, that is about ceilings. It's about insulation in floors and of course, also on flat and pitched roofs because roofs are really important in terms of insulation as well as the actual external roofing material as well. If you look at technical insulation, and we do think technical insulation, again, is a margin opportunity for us going forward but that is about high-performance insulation whether that be acoustic, whether it be water resistant, whether it be thermal or whether it be fire. And if you look at that picture in the center there, I appreciate it's not easy to make out. But that really is -- that's an HVAC system with very specialist technical insulation around it and very much part of where we see the business going in the future. And certainly, if you bear in mind, we've been a pioneer in insulation since the 1950s, that is where SIG grew out of but it's not necessarily where SIG needs to stay. This is about evolution, it's about development, it's about moving forward as the markets evolve. So in terms of Grow, quick summary. We have got great market positions. We've got really strong businesses in different European geographies and definitely, I think, underlines the fact that SIG business is not totally U.K.-centric. Our product mix is weighted towards structural growth and there are some regulatory tailwinds there as well. And I think that pan-European diversification that we have underlines the fact that we are not overly reliant on any 1 market, any 1 product sector, any 1 customer type. And I think that level of diversification, along with that mix that we had of roughly 50-50 residential, nonresidential, roughly 50-50 new build and RMI gives us a great opportunity to continue with above-market growth going forward. So moving on to Execute. What is execute mean? You could substitute execute for energize, I suppose. But this is about how we do what we do, being brilliant being a distributor. And what does that mean for us going forward? During this little section here, I'm going to talk about our performance management priorities. I will then invite my colleague from France to take the stage, and he will talk you through some of the things that we have done in France. And when you see the French margins and you see the evolution of the French business, I think it will become clear why Julien is here because we've done some great things in France, and it's probably a little bit further and ahead of the curve against some of our other businesses. And then I will also touch very specifically on U.K. Interiors and Benelux to make sure that everybody appreciates we haven't forgotten the businesses that are currently still in recovery as well. In terms of our performance management priorities, it's not an exhaustive list. This really isn't everything that we do as a distributor. But what it is, it's some key areas just to reinforce that actually we can have great ideas about market evolution. We can have great ideas about product evolution, but we've really got to be focused on what we do as a distributor day in, day out. Customer service being the best place for our customers, being the customer's favorite place where they want to go is really important to us. In terms of pricing and product mix, actually, it's not just about selling more. It's about helping our colleagues to sell more intelligently, and it's about helping them to sell a better mix of product that drives the margin and drives the performance of the business as opposed to just selling more. And that's why some of these other areas become really important to us. Procurement and category management, absolutely critical. When you think about the number of different products in which that we sell, the ranges that we need to have across the different European markets, really high-quality category management plays a crucial part in what we can do in the business going forward. Logistics and inventory. This might seem like a glimpse of the obvious, but we are a distribution business, and we need to be really, really good at logistics, transport and distribution. Productivity and modernization, utilizing modern technology for customer benefits, driving shareholder value, investigating how we can utilize technology to make some of the processes that we have in the business now more effective, more efficient, can we utilize AI in a way that actually helps us to modernize the business and continue to take it forward. And as Ian mentioned a few moments ago, the cost discipline. As ever, we have to take care of what we do on a daily basis. We have to make sure that we have a lean structure, and that also frees up the cash to help us to invest and develop the business going forward. But the overall execution and operational excellence really is critical. And I appreciate for some of you, you might sit there and go, "Well, isn't this what distributors just do every day, all day." But it's really important that we remind ourselves that the basics of running a distribution business on a day-to-day level, these are the things that we have to get right to start to give us the right to be the customer's favorite going forward. Couple of specifics on product mix and category management. And I think I mentioned about selling more intelligently, not just about selling more. And some of the things that we have to bear in mind is we have certain product categories that are inherently low gross margin categories. And we have to make sure that we can start to sell from a specification point of view that we can start to sell from a system point of view that we can make sure that we are selling the right fixings, the right accessories that overall can give us a product package that makes the margin more acceptable to us than just selling more volume of commoditized lower-margin product. But full system selling is really important to us. And that is where I think we can help our sales force, both internal and external, sell more intelligently. Private label, also plays a really important part in this. And I know that Julien will talk a little bit more about private label in France. But why is private label important? And when you've got certain categories that are inherently lower gross margin, at the moment, private label is about 4% in our distribution businesses of what we sell. And there's an important differentiation there. When I talk later about manufacturing and fabrication, obviously, everything that we manufacture is technically a private label. But within our distribution business, it's about 4% of revenue. Over the medium term, to really enhance the margin mix, we believe we need to get that private label up to around 10% of the turnover within our distribution businesses and we do think that is a really fertile area for us in enhancing our performance and enhancing the margin across the group. Shop-in-shop merchandising in some of the businesses, again, this is quite advanced. In some of our businesses, we're a little bit behind the curve in terms of what we have in terms of trade counter, self-select product giving the customer the opportunity to buy more when they actually come into the trade counter. And again, if we can focus that towards private label, higher-margin pickup products, it all starts to impact on the mix. If you look at those brands that you can see on the slide there, then they are just a selection of some of the private label brands that we have across the group. So as an example IRONDEL is a French brand. PREFIX is a Polish brand. FIXER is one of our U.K. brands. And you'll see there that we've got a number of different brands that are specific to different markets and give us a specific opportunity to really drive the margin. But I mentioned we're going to talk about the French business and some things that they've done really well. So I think now it's appropriate for me to say, you've heard from Julie A., you've heard from Julie W., but I'm going to hand over to Julien. Thank you very much indeed.

Thank you, Gavin. Good afternoon. I'm Julien Monteiro, I am the Managing Director for SIG France. I joined SIG in 2018, so that's almost 5 years now. It will be 5 years in 2 weeks actually. I'm going to cover 3 things this afternoon. Firstly, it will be an overview of our business, then you can get familiarized with and the strategic evolution of our business in France. Second, how we manage our performance, what we do on a day-to-day basis to -- day-to-day basis to arrive where we are and to go where we want to go. And finally, what are our ambition on the medium term. So as Gavin said, in France, we are not trading as SIG. But we are trading with 2 businesses, Lariviere on the left and LiTT on the right. Lariviere is our roofing business, and it has a very long legacy on the French market. Originally Lariviere used to be a family, I'm talking about a decade ago, where extracting natural slate from the [indiscernible] which is about an hour and a half on the west of Paris, and we're selling natural slate all across France until maybe the 1950s. It's now 80 years, almost 80 years, more 75, 78 years, that Lariviere has become a full distributor of product for roofing, especially focused on pitched roof, natural slate, but clay tile as well. Lariviere joined SIG PLC in 2007 and with it 101 branch -- branches is covering the whole French territory with an obvious stronger presence in the West, as you can see on our map here on the left. Taking into account this background, in the last few years, we have decided to reposition Lariviere at its deserved leadership level in France. We will see how we've done that a bit later in the presentation. With the turnover today of GBP 466 million, Lariviere is uncontested #1 distributor of roofing product on the French market. On the right, you have some details about LiTT. LiTT was created in [ 1918 ] and has joined SIG Plc in 1997. LiTT has more than 40 years experienced now -- existence on the market, and, in recent years, have been focusing on deploying its new strategy, and we talk about that later as well in the presentation. With its 39 branches and a turnover of around GBP 218 million, LiTT is a #2 in its market just behind SFIC from Saint-Gobain distribution. Both are dealing with trade customers only. And we are dealing on the French market, obviously. The construction industry is representing roughly 8% of the national GDP. EUR 80 billion is a market size of distribution of building materials for the construction industry. Our accessible market, so once we exclude [indiscernible], electricals and all that, is EUR 18 billion. And this is including [indiscernible] distributors. The building material market, despite the presence of the big actor -- some of the big actors and the one I especially mentioned before, is still not yet consolidated. This is due to the customer base being very highly fragmented and also to the geography and the company's profile. There are still a lot of regional actors and family-owned business in France distributing material focus for our construction. So this makes our market, as mentioned earlier by Gavin, very much distribution friendly. So we have a massive role to play, and we are playing it. This market is also very well animated by our government with regular stimulus to stimulate the market, but also regulation to make the market evolution. In regard of our performance, Lariviere and LiTT are 2 real specialists. Until 2018, there were 2 businesses with a lower GP than ours, but with some lack of investment into our branches and some poor systems ready, they also had back in this time in 2018, not much room to grow, no more capacity, and they were not future proof. They were performing, but not future proof enough. Since 2018, for Lariviere and a bit earlier for LiTT, this strategic evolution has started. I'll come back in that in a minute. And it is -- we have seen for the first time in 2012, both company over 5% return on sales. As you can see on the margin on the GP line that Lariviere has grown its GP by 230 basis points from 2018 to 2022, and LiTT grown its GP by 140 basis points from 2018 to 2022. So we see how we've done that later. So I will now go to the strategy evolution that drive this performance. The distributor Lariviere,. [indiscernible] history of pitched roof, as I said earlier, especially in natural slate from its origin and clay tile roofing. Our offer and our model was very appropriate in area with meet small-sized cities or TAM. And this was main type of roof and this is Lariviere background. However, our range was narrow and was not adapted to cover the whole market. The strategic evolution of Lariviere was mainly around broadening our range to capture wider customer segments and different kind of building type. We also -- we were also in need to develop our image. That was very important and make sure our legacy was well known and was expected in our current market. So the GP evolution through product mix and pricing was the first focus of attention back in 2019. To develop that we need to adapt our offer for metropolitan area and big cities market. We created a key account team. These sales today are representing more than 10% of our sales which is one of the key element of our success. So now we're touching markets such as flat roofing, waterproofing, solar market, et cetera. As you can see on this slide, Lariviere is now supplying a much wider range of product than the pitched roof that I mentioned earlier. We're also getting involved in some innovation and ready to respond or to anticipate some new regulations from our market like vegetated roof or solar panels with some technical specific aspect for -- especially industrial building. We are growing, for example, on the solar business by 40% today. Of course, it's a lower base. We're still 40%, and we tend to accelerate that since the last 2 years. In addition to this modern roofing, we also have become recognized for supplying prestigious heritage building projects. For example, we've been involved strongly into supporting description of the roofer profession, which is highly technical into the UNESCO Heritage through our association registered though, the golden gesture. And the Lariviere, has been also -- and we are very proud to be heavily involved in the restoration of Notre Dame, in the Paris. So we are supplying for this job site, all the wood and the lead. By the way, the lead is find -- have been found in the U.K. by the Lariviere team. Another important part of Lariviere strategic evolution has been how we utilize our branches. Yes, our business is a branch business, it's a local business. Our core historical market, customer segment is a trade artisan, small company, 1, 2, 5, maximum 10 people. They're doing pitched roof individual house. They're repairing after the storm. They do love extension stuff like that. We noticed that we are not getting the most benefit of this flow of customers are coming every morning into our branches, 101 branch, 50% of our sales are coming from people visiting us, especially in the morning. Very short period of time from 7 to 11, you see this lane of white van waiting for us to load their van, their truck and then to go on the job site to repair what they have to do. That's our core, that's our customer base. That's 10,000, 12,000 of our customers like that. But we are not getting that properly. So this is why we have decided to execute a strong program of branch refurbishment and redesign. Using merchandising technique from retailers, because we're partly retailers and developing a range of shop-in-shop product, easy to pick, high margin, and obviously, including some own labels and some innovation products. This is what contributed a lot to this gross profit improvement I mentioned earlier. But not only that, it also gives us a chance to improve our customer experience when they visit our branch. They discuss technical stuff, innovation with our team. They can met suppliers. We can organize small training. They can just come for coffee, but also it's great as well a better environment for our teams. If we talk about LiTT now, over the last few years, we have also evolved LiTT strategy. Previously, also had -- previously, LiTT also had a narrow range of products. And it was mainly focused on ceiling, insulation and plasterboard. And as I mentioned earlier, we have not invested much in the development of LiTT in any way. Today, as you can see from this slide, on this marketing image, LiTT has repositioned itself as a full interior design company, supplying actually the six phase of the room to our customers. The 4 walls, the ceiling and the floor because our customers are actually working on this 6 area of the room. So over the last years -- over the past years, a little bit maybe earlier than LiTT -- the Lariviere sorry -- we gradually brought a wider range of products, starting with partitioning. How we did that? We trialed partitioning in a few branches and then following the success of that, simply, we deployed in many branch, easy. From successful trials, we deployed this range of products. Today, our range has more specialism and higher-value products. And all this range of products include flooring, technical flooring, joinery, panel -- acoustic panels for ceilings, but also paint. Obviously, to allow this development and to accelerate it, we have to do a few things. But in a similar way of Lariviere, we wanted to offer to our customer a better experience. To a less big extent than Lariviere, but still 30% of our sales are made by customers coming in the morning into our branch to pick up the usual product, and we said, what can we do with these people coming in? Let's try to further more. And then we invested in our network. What we can see on this slide is a before and after photos illustrating what we've done to our branch to support this strategic evolution. So the creation of shop-in-shop again, using technique or merchandising technique, not only tidying but make sure we have the right product, the right pricing at the right margin, et cetera, in our branch to trade the last second purchase from our customer. And this is what also contributed to this GP development into the LiTT network. On the side of that, new range of products, new products. Obviously, we have to train our team. That was very important phase to make sure that our people could sell this new product and as well to accelerate this, we opened a new warehouse because what we've done with early hours was partitioning, we're not fast enough. So having a warehouse now, we can buy in bulk and very quickly spread this new range of products in good quantity in all our branch network. So in -- at the end of 2021, we opened our first national distribution center. Reiterating what you say, Own-label was a big part of this margin improvement. So high-margin own-label products to sell in shop-in-shop. That was the first target. We revitalized what we already have in Lariviere, was a bit forgotten but we also create a lot of new potential. Today, the sales are under 5%, between 4.5% and 5%, and we're targeting to reach, in the medium term, more than 10% as a weight of our total sales. In Lariviere, we have the Galiza, which is our historical exclusive natural slate, not from the [indiscernible] anymore but from Spain. And IRONDEL, which is the brand you can see in here with all standard non-branded sensitive product that you can find in our branch. And as we put Own-label center part of our strategy, we have to create one. And we -- Alye born in January 2022. So we'll have 2 years in a month and already representing something like 1.5% of our sales. So again, a lot room, a lot space for improvement because we're targeting to be at 10% or within medium term on all these brands by creating SKUs, but again, put them in the buying process of our customers. I will turn on to Focus, because we have a strategy, and we believe this is the right one. How we do execute it and how we ensure that we manage our business each day to make sure that we deliver good operational performance? The success of our business is relying on the quality of the execution of our strategy. For that, we have to make sure that our people are fully engaged. And I come back on what Julie said earlier. In SIG France, we have a motto, and we want to be perceived as a modern and ambitious company. I intend by modernity not only digital or technology but also modern style of management. It is important today to be an attractive company not only for younger generation but also for longer existing collaborator, but it is to respond to expectation of our colleagues in terms of clarity of the vision, clarity of our message, clarity in our strategy, accountability, local accountability, discipline but also personalized balance and leadership in sustainability, inclusion and social responsibility. This is what is driving a better engagement. And again, people engagement is the first driver of the success of the execution of our strategy. And so every year, we serve our colleagues, and we listen to them to measure this level of engagement. In the last 3 years, the score for SIG France has been between 75 and 80, regularly, slightly over the group result, and this is also over the French benchmark. So we're pretty sure we are in the right direction for that as well. We have numerous initiatives to make SIG France an attractive company and to make sure we retain our best colleague. We are running for the top employer level, as Julie mentioned, which will be a great recognition to the effort we made. I'm going to come back on that for a second because there's a wonderful photo of [indiscernible], who joined LiTT as a storekeepers a few years ago and is today one of the best branch managers in our business. I need to talk to that of course. This slide is set out some of my key priorities. What are our key priorities, and this is what I'm following every day, day after day. And absolutely, we want to be sure that with relented less, we are keeping the focus and the discipline on the execution of these 4 areas. I want to be sure that our branch are well armed to perform in their local market with the right things in place and we closely monitor that performance. Since 2019, we have lowered the number of low performance from 26 to 4, today in 2023. The second one is about branch profitability. This is the key driver. Pricing, obviously, is driving GP with also product mix. So every branch has a clear target in terms of applying the pricing process, compliance to the pricing process, but also very clear target on this many new range of products on level we deploy in every branch of our businesses. So we need to make sure our team are performing in those key areas. On the third column, you can see the productivity. We use -- now we have the capacity to use a lot of KPIs that we read on -- some of them on a daily basis, weekly, monthly, but quarterly as well to make sure we are incentivized. We manage, and we clearly know where we go. They're not that many, but they're very focused on what we're trying to achieve in them. And finally, to keep on improving our productivity, but also our reliability, quality where we develop a lot in technology and in modernization. A few will be mentioned later in the second part of the presentation. So with the right strategy and the right processes in place. I will now turn to look on our ambition for SIG France, looking ahead. Looking ahead, is about medium-term target. Our ambition is very clear, absolutely very clear for all of our people. And every one of them -- every one of us know exactly what is their own contribution. We earned to grow to become a EUR 1 billion company, currently EUR 800 million. And we think we can further grow our margin with all the space we have in growing Own-label, shop-in-shop, added value product with a higher margin, as I mentioned earlier. So we will support revenue growth and margin looking ahead. Firstly, we will drive our growth through our branch network and further market share potential. In Lariviere, we have some area like Solo, where growth could be bigger than we think. And Gavin will discuss that later. We'll be also developing the omnichannel capability. It's something we haven't explored yet. Marcin will go a bit more into details on what we try to copy from our colleagues in Poland. We will continue to reinforce our specialist market, especially positioning in our market with room to grow further into very specialist product, niche market and things we are currently exploring as well to grow. Key account is an area for more growth, more specific market, more prestigious job site, as I mentioned earlier. Pricing management, Own-label development and shop-in-shop is something we do now since 3 years in an intensive way. It doesn't deliver everything it should have because we're still ramping up. So that's guaranteed room for growth in the margin. Finally, we will continue to bring more value-added and innovative products into our range, including sustainable innovations, and you heard about that a bit later. For example, in Lariviere, today, we are working on a new lower carbon slate -- I invite you to ask me a question about that later, if you're interested -- so again, as we have built this capability, and we have proved them because I've been working for the last 2 years. We are, as a French team and me as a Managing Director, extremely confident, we will achieve those targets in the midterm. Thank you very much for your attention. And I will now pass back to Gavin.

Thanks, Julien. I think there's just something intrinsically more interesting about someone talking about France with a French accent than listening to me talk about it, so much appreciated, Julien. In terms of the French business, look, it's an example. And this we're just trying to bring to life here with a few examples of things we believe that we can deliver across the group. And I think the French business is a real-life example of, if you have a plan, if you have a strategy, you execute it well, you can really make great progress even in difficult markets. But I think the French business really is one of the ones in our group that is much further down the line of evolution than some of the others. That performance management culture in simplifying messages and making sure that our colleagues right the way across the business understand the role that they play in each part of that evolution is also really important. And I think as Julien very eloquently put there at the end, we believe that France has got further to go. We do believe that France can get to EUR 1 billion of revenue in the medium term. We do believe that France can get to a 7% EBIT margin. And I think it's also worth bearing in mind here, even with that further development scope, today, France is the largest profit earner that we have within the SIG Group. I did say earlier that I would just spend a few minutes talking about U.K. Interiors and Benelux. And I think we'll start with sort of U.K. Interiors and what we've been working on in recent weeks is kind of restructuring the way that we look at the U.K. business, restructuring the way that we manage and report that U.K. business. And U.K. Interiors going forward, and I will share some margins with you in just a moment. But U.K. interiors going forward will be a pure interiors business. Historically, we've reported the U.K. as interiors and exteriors, and we will now be reporting that as 3 separate businesses: Interiors, Exteriors and Specialist markets. I think particularly with the U.K. interiors business, still very much in recovery. It gives greater transparency, gives greater visibility, gives greater accountability in terms of the way that, that Interiors business is managed. We've now got MDs appointed for each of those 3 operating businesses. And we've also streamlined through a retirement and some other changes that we've made across the U.K., the reporting line across the whole of the U.K. So actually, the 3 OpCos that we have in the U.K., now interiors, exterior, specialist markets, the managing directors of each of those businesses report directly into me, which also means that I think Ian and I can get much closer to understanding the real levers of opportunity that we have within those U.K. businesses. We've also taken some cost out of the U.K. infrastructure so far this year. We've taken about GBP 3 million worth of annualized cost out. We do believe there's more efficiencies that we can drive both in the U.K. and across the group probably more to say about that when we're talking on the results in the early part of next year, but really making sure that not only have we got a shorter management structure, but also it's leaner, it's more efficient and hopefully make the managing of the business more effective. In terms of realigning the U.K. from 3 -- from 2 OpCos into 3. On the left-hand side of the chart there, you'll recognize that is how historically we have reported our U.K. business. So the Interior business for 2022 had revenues of just over GBP 700 million. And in the first half of this year, we reported an EBIT margin of 1.7%. And then we also reported the Exteriors business, which last year had revenues of GBP 445 million and in the first half of this year, an EBIT margin of 2.7%. Now, within those 2 businesses, there was quite a significant element of specialist businesses, construction accessories, some fabrication, some manufacturing that we believe needed more oxygen to enable them higher-returning businesses to grow and to develop, hence, given that greater transparency in terms of the U.K. So going forward, we will report the U.K. in 3 very separate OpCos. And if you look at that interiors business, you'll see the revenue, this doesn't change any numbers. This is purely the way that we have reported it, but the revenue for 2022 would have been GBP 566 million. The EBIT margin in U.K. Interiors at 0.8%. So as I said earlier, clearly recognizing that, that is a turnaround situation in a business that we believe we need to significantly improve the performance of in the medium term. The Exteriors business slightly lower level of change in terms of revenue. Its revenue last year would have been GBP 363 million with an EBIT margin of 2.5%. But what that does spin out of those 2 original reporting lines is the specialist markets business that we have within the U.K., which last year accounted for revenue of about GBP 220 million with an EBIT margin of 4.6%. And this is part of the reason why we believe these particular group of businesses needed more oxygen to grow because we've actually got a starting point of higher returns today that we believe, a, we can grow in terms of scale; and b, we can still develop the actual returns. So if you look at the far right-hand side there, what we're being very public about today is what we believe the medium-term EBIT margins of those 3 U.K. OpCos can get to. So in terms of Interiors, we believe we can get that business to being a 3% return. Important to recognize 3% shouldn't necessarily be seen as an endpoint. But I think from where we are today at less than 1%, in the medium term to move that to 3% is a reasonable and realistic target to give the management team and to have across the group. The Roofing business and the Specialist Markets business, we both believe that they can get to a 7% operating margin in the medium term. And I'm very conscious putting these numbers out there gives you guys something to measure our progress against going forward. It's very deliberate. It's very much part of wanting to be transparent and give greater visibility to what we have. And we will talk more about those Specialist Markets and the opportunities that, that brings going forward in just a short while but that is how we will report 2023 -- we will report in those 3 operating companies, giving like I said, that greater level of transparency to each of the U.K. businesses. In terms of U.K. Interiors, just to remind ourselves of what it is, that GBP 566 million of revenue, #2 in the U.K. insulation market, around about 2/3 in terms of new build, 1/3 in terms of RMI and then split almost 50-50 between residential and nonresidential. Appreciating that this is the historic base of where SIG when it was known as Sheffield Insulations, which by the way, the name was changed in 2005. So it's like quite a long time ago that it hasn't been Sheffield Insulations and known as SIG, but appreciating this is where the group grew out of and recognizing it's one of the more margin-challenged parts of the group that we have. Hence, we can give it greater visibility as we continue to drive the improvement in that business going forward. In terms of what it does and where it products land, again, some of you may know this very well, some of you who are newer to the group may not recognize this. But in terms of where the Interiors product is used, you've got about 37% of its revenue is pure insulation being structural insulation and technical insulation in terms of acoustic fire and thermal. About 40% of its revenue is dry lining, again, for those of you who may not know, dry lining simply translated as plasterboard and the accessories and metal work used to hang the plasterboard within the business. And then General Interiors in terms of partitioning, flooring, ceilings and then adhesives, sealants and fixings making up the other 23%. But that is structurally how that U.K. Interiors business is made up, and that is very much part of what we'll be focusing on to improve that business going forward. I think the evolution of that business is quite interesting as well. Again, I know some of you have followed SIG for quite a long time. And before 2019, I think from a strategic point of view, there was an element of looking at this as maybe a centralized business, something that could be driven from larger distribution centers with a narrower product range. And I think it probably didn't achieve the aspirations and the results that was anticipated at that time and it did result in some market share loss and a little bit of loss of focus, particularly on those local customers. From 2020 onwards, when my predecessors, Steve and Ian arrived very much looking at reestablishing that sort of local market, getting more clearly focused on local customers, making sure that our branches were really important, making sure that our colleagues in the branches felt that they were playing a really integral part in the evolution of the business and then rebuilding market share and more importantly, rebuilding credibility in the market as a really high-quality Interiors distributor. And then going forward, we absolutely see that the process, efficiency, as I mentioned earlier, product sales, mix margin management, looking at private label, looking at whole system sales really important in driving the quality of the earnings in that business going forward, whilst maintaining and strengthening that local branch network and making sure that the colleagues in the branches appreciate that the branches really are the center of this business, and that is where the business will be driven from. And just to reiterate, across this business here, if you think about the large U.K. house builders, around about 5% of our group revenue ends up in those large U.K. house builders. And that's just to reinforce this message that the vast majority of what we do is smaller local contractors and smaller local customers. But U.K. interiors will have absolute transparency going forward, and you can measure us against the margin progress of that business. In terms of how we do, what we do and strengthening the margin, then a lot of the areas that we mentioned earlier on about the pricing processes, making sure that we simplify pricing processes at a branch level. Historically, there has been some complexity around these pricing processes, we need to make sure that they are simple for the guys to understand and make sure that they are workable and deliver competitive prices. In terms of operational efficiency, this is where we get back to doing what we do on a daily basis and doing it really well and wherever possible, using technology to drive improvements and to drive efficiencies. And then back to that point again about product sales, mix, margin, private label. And I think what's really important for us is the position that we hold in terms of being the specialist in insulation and interiors driving the refurb of buildings, which is obviously key in the decarbonization of the built environment. So Richard Burnley is the name of the man who is going to be running the U.K. Interiors business. Richard, unfortunately, can't be with us today, but very much hope to introduce him to you maybe one of our results presentations going forward. The other business that we recognize is in need of turnaround is Benelux. And you'll see there, we have a number of branches across the Netherlands and then some branches that are branded as Isolatec, which is a technical insulation business in Belgium. Again, quite a different mix to some of our businesses. So over 60% involved in new build but actually, the split on residential and nonresidential, a little bit more even at 45-55. But in terms of the new build market in Benelux, it's a much more important part of what we do. It does have revenues of just over GBP 115 million. And obviously, as we stand here today, is a loss-making business and one that needs to be turned around. I don't think it serves any purpose for us today to go into why the Benelux business got into the point that it has got into. But I would just say, look, there's been a number of issues that have arisen over a number of years that probably means this particular business lost a little bit of focus within the group and certainly suffered from a little bit of a lack of leadership and clarity and management within the Benelux region itself. What we have done within the Benelux business, even over the last few months, we've got new management in place. So Bert de Ru joined us last month, Bert has got huge experience in our industry, huge experience in our sector. He's very well known to some of our management already because of the businesses that he's been involved in across Europe. And he is absolutely as far as I'm concerned, the right man to drive, that sort of operational and commercial performance improvement, rebuilding the market position and very similar to the U.K. in terms of rebuilding credibility within that Benelux business as well. The improving of the organization and performance, employee engagement, this is all driven by good quality leadership. And I think when you're trying to get a business turned around, the business itself needs to look at the leadership of that business with real credibility. And I think with Bert de Ru, we absolutely have the opportunity to do that. And again, and you'll hear this many times this afternoon, that managing mix, managing category, selling more intelligently, we have got a very good technical insulation business in Benelux already run by a very capable lady called [ Esme ], and we see that as being again, higher margin potential going forward and help us to turn the Benelux business around. And you'll see later on as well. We're looking at Benelux with a realistic viewpoint in terms of where we think it can get to from an operating margin point of view going forward. So in terms of execution was actually quite interesting looking at the working notes for this presentation this afternoon because at 1 point, it just said, Execute CEO, which just kind of makes you feel a little bit nervous at times. But anyway, in terms of where we were from an execution point of view, we do believe across the whole group. We have got a lot of opportunities, not only to drive market share but also to drive margin performance, to sell more internationally and to drive the mix overall. You'll have seen from what Julien spoke about, if you have the right plan, if you have the right strategy, if you execute it well, if you've got your colleagues involved, if you've got your team bought into the plan, you can actually achieve great things. And also that transparency level of what we're doing with U.K. Interiors in separating it out with the opportunities that, that delivers in terms of Specialist Markets, which we'll talk about shortly and also the turnaround that we need to execute in Benelux, all of those gives us an opportunity for being operationally and performance-wise, a better business going forward. At this point, I think it's probably appropriate to break for a comfort break. Almost exactly quarter to 4. So if we literally do a 15-minute leg stretch, I think for those of you in the room, you know where the facilities are outside. For anybody online, we'll have a countdown going on the screen that runs us down for 15 minutes, but we'll start again at 4:00. Thank you very much. [Break]

Okay, again. Let's kick off the second half. So hello again. I'm delighted to be joined in this section under modernize by Marcin Szczygiel, who runs our Polish business, which he's done very effectively for quite some time now. And in a few minutes, Marcin will give a brief overview of that business. And more specifically, we'll talk in a bit more detail about the great strides that they've made in developing a genuinely omnichannel business offering. Firstly, I'll talk about how we're progressively modernizing the business as a whole and on the opportunities that technology offers to help drive productivity. Productivity is a key plank of our margin improvement plan. After the progress made in rebuilding growth and momentum in the business in the last 2 or 3 years, I think it's fair to say productivity is now even more front and center in our thinking and priorities. And the use of modernizing technologies is key to that. Modernization includes many things, of course, including e-commerce, which tends to be the focus of questions we get in this area. Also in that modernization bucket for us, as I guess, for most companies, would be digital automation and AI, which clearly has vast, albeit yet undefined potential for us as for most. We're exploring various technology-led initiatives across all these areas, but for today, we wanted to focus on the 4 elements that are shown here. So this shows you a broad range of technology platforms or applications that we're operating today. Firstly, what I've termed here organizational systems, i.e., ERP and more standard BI. In line with the more federated structure that we operate, each country operates its own ERP, which is, for us, a much more nimble and cost-effective approach than having group-wide platforms, as we've mentioned on occasions over the last couple of years. So ERP and BI platforms are upgraded or changed when required and/or when we can benefit from the latest technology innovations. In the other areas on here, I would say we're less mature but very much on the journey with a great deal of opportunity. So if you think about the branch, for example, the core processes of a branch in our business, the levers that we have for operational productivity are basically about enabling us to push greater volumes through our network more efficiently, i.e., with the same or less resource or cost, which benefits the P&L and also the balance sheet. So warehouse management technology especially for our larger warehouses is critical to that to enable quick and accurate picking and packing, which helps both inventory and cost management and higher service delivery levels. Of our larger businesses, Germany and France have made good progress in their initial deployment and adoption of WMS. The U.K. has the technology in place, and I think fair to say the opportunity to utilize it more effectively in the future. As regards to customer-facing technologies, notably e-commerce platforms, they are, as I said, probably the most externally visible example of modernization. In some of our markets, our customer base is very actively seeking and increasingly expecting more capability on this, in others, less so. Whatever the current customer expectations, we have great opportunities to drive efficiencies and enhance customer experience over the long term. And Marcin, as I mentioned, will cover this in more detail. Finally, on the delivery, clearly, a key part of our operation, and we've made good progress embedding transport management systems within most of the countries. And shown here are some examples of that, all of which are improving the customer experience and/or enhancing our productivity and often both. Although there are certainly similarities in capability and output, they're all using different technologies or processes as best fits their market. These systems enable us to plan delivery routes and vehicle loads more efficiently. And for example, they give, in most cases, customer live notifications about the delivery and timing thereof. They help us to communicate with the drivers whilst out on routes. And in some cases, for example, in France, that can assist with measuring and incentivizing more eco-friendly driving, which has both regulatory and financial benefits. All of these applications and projects can vary cost-wise but are generally quite inexpensive to implement with good and very quick returns. In Ireland, for example, track my order, which you can see there on that smartphone, was developed by the Irish IT team themselves with our existing systems and partners, and it cost less than EUR 20,000. So now that's an extreme but very positive example of how cost-effective these sorts of enhancements can be. More importantly, that project, like all of these, has helped the continued improvements in our customer Net Promoter Scores across the group. The key point in areas like this is that we can be and increasingly are agile and responsive, testing and learning as we go, improving our operations and our customer experience. So the businesses are all at different stages as regard to modernization. Each country has progressed technologies at different stages based on their local needs and, to some degree, their past and current priorities, as you can see from this slide. I won't get into detail of every green blob on here. My overarching comment is that we're solid on the core platforms with room to improve and utilize automation over time. So under the other 3 headings, there's no cookie-cutter approach to this. We've made good progress, and there's great opportunity for more. And finally, just a comment on our group-wide internal KPIs on productivity and how we think about the impact of modernization. It's not an exhaustive list, but it does show the key metrics we look at under the 3 main buckets we've just seen. So where practicable and meaningful, these are measured and reported on a branch basis, as Julien was alluding to earlier, others at regional or opco levels. We can compare and benchmark across our own opcos, which is always meaningful and informative. And of course, some healthy rivalry and debate is always very productive and helpful. Ultimately, of course, it all comes down to operating margin or operating profit and conversion of that profit to cash flow, 2 of the measures on the right-hand side. One of our jobs is to make sure that those 2 overarching financial goals and the reasons for having them are well understood throughout the organization and to ensure that everywhere in the business, we do have the right KPIs and incentives in place for the right people, i.e., measures that people can really drive and influence every day that help us hit those twin goals and improve profitability and cash flow. And as with much else that you've heard about today, I think we've made good progress over the last couple of years on embedding productivity targets and measurements, but with clearly more to go. And we'll be continuing to push that hard over the next year or 2 and beyond. So that's it for me for now. I'm very pleased now to hand you over to Marcin.

Yes. So good afternoon, everybody. My name is Marcin Szczygiel. I'm with SIG for over 20 years, and all my professional career is linked to the construction, industrial and building materials industry, so companies like Saint-Gobain before SIG. What I would like to present today, here we go, there are basically 3 things. The first one is the brief overview of SIG activity in Poland and the Polish construction market. Secondly, I would present the SIG unique omnichannel model that we developed in Poland. And thirdly, what opportunities are related to this model if we implement it in other geographies. So let's start with SIG Polska. This slide provides a snapshot of our operations in Poland today. The map shows that we've got a rather good geographical coverage across the country, from border with Germany in the West, Czechoslovakia in the south up to Easter border with Belarus, Ukraine and Lithuania. However, we still see some pockets of opportunities on the local markets to open more branches in the near term in the future. SIG Polska was established in 1996 and was acquired then by SIG plc as a part of bigger German acquisition of company WKT. Since then, the company grew through greenfield branch expansion and consistent acquisitions. All the acquired businesses were merged and integrated under one SIG name in Poland. SIG is a multi-specialist with a leading market position in key segments of external insulation, technical and industrial insulation sector as well as interiors and finishing systems. SIG Polska serves quite diverse customer base, mainly contractors, mainly specialized contractors but also general builders, some big general contractors and, to a lesser extent, some merchants and OEM manufacturers, so original equipment manufacturers. What is the construction market in Poland? In euro terms, it is 1/3, 1/4 of French or U.K. markets, but at the same time, it is larger than Czech, Slovakia and Hungarian markets combined. So it's a decent-size market. The specific of Polish market is the fact that this is slightly weighted towards new build. And this is a result of kind of catching up that took place in development of Poland after big economical change and political change that took place in early '90s. This is growing market due to a few reasons. In residential, we've got unfulfilled demand for the new apartments and flats as well as increasing quality of living standards expected by Poles. In nonresidential, we've got all types of investments, so public, private, EU founded in all market segments, so offices, shops, hotels, education, health care and so on. The latest trend that we see -- that we hear about is the trend for nearshoring investment in manufacturing in Poland. That means that big companies are investing more in our part of the world rather than Far East. And a good example of this would be the Intel investment in chip manufacturing in Poland, which was announced a few months ago with the value of excess of USD 4 billion. Of course, we've got now, as you are, I'm sure, aware, quite a lot of defense-related investments as well. Building materials market distribution in Poland, it's very fragmented. Majority of our competitors are small local family-owned companies, which were established late '90s, early 2000. What we see is that the market is quite price-sensitive, but at the same time, the customer would like to get the best possible service. And there is strong trend towards high-performance products. Mainly this trend is resulting from increasing construction standards, building efficiency standards. So you cannot increase the thickness of installation forever. You have to use more efficient product, better system. In other feature of Polish market, which is presented in those 3 pictures on the left, is that due to our political history, there is a diversity of architectural styles, and our range of product at each branch has to be tailored to capture the local building needs. So those examples show you some very historical building. Then in the middle, less historical building, which is the post-Soviet block of apartments or flats. And on the top, it is built maybe 3 years ago, the Philharmonic building in Szczecin, Northern Poland, very modern. And our branches are delivering products to all these type of buildings. So our product range is slightly maybe wider. Overall, Polish construction market has a good mix of characteristics providing long-term growth opportunities for us. SIG Polska is a multi-specialist with 3 differentiating principles. We are meeting customer needs locally by offering locally right, full specialist product range. We are developing globally expertise in sales, customer service and logistic management. And we've got unique sales model to which I will come back later. We understand very well our role in the construction process between manufacturers and contractors and how we -- and we understand well how we are adding value there. And we are focused on recognizing our customer needs, so we listed main key criteria for customers, cooperation with distributor. And we are focused very much on being easy to deal with, which is one of the key criteria for our customers, to which I will come back again in a few minutes. And we are also building strategic relationships with our suppliers. Majority of them are same global companies like for the rest of the group, so Saint-Gobain, ROCKWOOL kind of groups and so on. And we understand well what value we add in this cooperation. I mean we give them access to thousands of the local customers, and we also can provide them with increasing volumes. But what is more important, we give them ability to introduce new products in the market. And there is nobody better in Poland that could deliver new product to the market all over country. These activities leads us to continuous focus on productivity improvement to ensure that our growth is a profitable one. So what our omnichannel model is, first of all, we put in this model experience of the customer in the center as we want SIG to be as easy to deal with as it is possible. Traditionally, B2B distribution businesses are based on the personal contact between people from different companies and building trust in the cooperation over time. Some traditional B2B distributors entered into e-commerce by opening separate e-shop in parallel to their traditional activity. And in this e-shop, customer can order product. Usually, those channels, as I said, operate in parallel. And in other words, you can buy either in the branch or through e-commerce but not really mix those 2 routes to the customer. SIG Polska developed different and unique model, which is based, as I said, on omnichannel approach. It allows customer to engage with us through a number of different channels, whichever whenever is most convenient for them. So our e-commerce platform was designed from the beginning to be an integral part of whole customer, what we call ecosystem. The e-commerce sales is served therefore by our branches, which is not separate channel. It is served by our branches. And our salespeople can interact with customers through the e-commerce site. E-commerce customers can also then interact by phone on construction site or at the branch with us. The e-commerce platform offers the same purchasing experience to them. Customer service support is the same. Deliver options are the same as well as individual pricing and product availability. But actually, e-commerce is much more than just a web shop. It is an organization and information hub for us and our customer. It gives customer many additional functionalities, like access to all the history of transactions with us. It gives also them opportunity to monitor orders if they run different construction sites so they can monitor orders and payments from all the sites they run if the customers are bigger. There is ability to use the building system, which help them to calculate which amount of products they would need for specific projects. And also, we can set or customer himself can set in a system different authorization levels for his employees as far as orders are concerned or access to the data. Another popular functionality is the fact that customer can download with just one click all the product sheets related to specific order or specific sales, which is very useful at the moment of commission of the project. So we don't have to look for those information and deliver to customer. He can with one click get all these documents which are necessary himself. So as I mentioned, the customer can interact at the same time with us in all the traditional ways, so he can visit the branch and collect the products. He can send us e-mail. He can call us. He can use all the traditional ways. He can be visited by our salesman. At the same time, he can use the platform in the -- with the functionalities that I described. So this whole system presented on this slide is providing customer with kind of what we call seamless purchasing experience regardless of selected sales channel. We clearly see some benefits from operating omnichannel, and some of them, I'm presenting on this slide. So when we compare the omnichannel customer, which is a customer that buys traditionally and on e-commerce versus customers which are traditional only, we see that omnichannel customers, they buy more products. The basket is bigger. They spend more money with us. They also buy more of our private-label products. Our salespeople, if they use omnichannel, if they've got not only traditional but also omnichannel customers, they are more efficient as well. They can serve more customer in the same period. So these things in return help our profitability and productivity by driving wider product range that we are selling, including own label, better cross-selling and better sales efficiency by our team. A little bit of the history of development of our e-commerce platform. So as you can see on the graph, the e-commerce platform was established in 2017, and it is continuously developed since then. As you can see on the graph, in the past few years, we grew both sales in traditional channel as well as in e-commerce. The e-commerce sales, as we call it assisted and non-assisted together, in total revenue reached 17% last year. And we are tracking similar, actually slightly level this year. At the same time, traditional sales grew as well, and we opened some traditional branches as well in the additional locations. So actually, we are growing both traditional and new channel at the same time. Since 2017, we have done some just small marketing of e-commerce site but mainly through our branches and by giving omnichannel routes of interaction to customers. The factor that led to growth of the share of e-commerce sales has been the additional functionalities that we added. This has been generally well received, majority of those functionalities as they were meeting customer needs very well. And majority of customers who switch to omnichannel, they usually stay there. They are not coming back to branch-only service. And to give you example, one of the widely used functionalities, our product system calculators. So for specific solutions, either the drywall or external insulation, the customer can just put what he needs, and the calculator will give him amounts and the prices of the products that he needs. And those calculators were viewed 120,000 times last year. So they are really, really widely used. You can also see that in the period 2020 to '22, COVID supported step-up from 7% to 13% of sales, we noticed, and we kept it since then. So it's sustainable now. The platform, on the other hand, now offers and will offer even more additional functionalities to our employees, so not to customers only but also to our employees. And by this, it will become kind of digital meeting point between our customers and our people. And the 2 examples that I'm mentioning on this slide is online offering module. That means that our sales representative can make an offer on the platform, customer can see this offer, and with just one click, the offer comes to our system, confirmation comes to the customer, much less work to everybody in the process. Another one would be electronic proof of delivery. Again, when our driver delivers product to construction site, he's just confirming the delivery in his application. And straight from this application, information or the confirmation comes to our -- on the platform to our branch and to the customer in the same moment. So at the beginning of this year, the decision was taken to use Polish experience and create kind of SIG omnichannel excellence center. And as a result of it, our omnichannel director, Bartosz, was promoted to the group position at the beginning of the year. The aim of this organization change was to use SIG Polska experience and learnings since 2017 in establishing each channel in other operating companies and use support of team based in Kraków and check if the technology we are using in Poland would be good enough and is transferable to other geographies. There are, of course, expected benefits from this approach, and some of them are quite basic, like quick sharing knowledge, achieving cost and time benefits and also the reduced risk of future projects. Our approach is very practical, as described previously by Ian. And for omnichannel project to be successful, there must be a local management leadership and local resources to deliver the project while the central Polish Kraków-based team will give the support and experience. So where are we now? As we are standing today, we have very advanced project that we are doing together with Wego, so our sister business in Germany. The project is actually run by Wego management, so my colleague, Alfons, and the local leader, Christina, the local e-commerce leader. It has started by collecting local German business requirements for e-commerce platform and for omnichannel and later comparing them with what is available on existing Polish platform. And the good news is that majority estimation says 85% of front-end functionalities required by Wego are met on the Polish platform today. Obviously, the integration with other local systems, including ERP, will have to be done locally and separately because we are running different ERPs. So basically, to show how it works, this is the Polish site, and this is how the German site looks like now, so not far away. Another project which is being considered now is e-commerce for LiTT, our French interior company, which was introduced earlier today by Julien. Again, throughout the evaluation of local French requirement, this has been conducted locally by LiTT. And actually today, in this moment, the LiTT team is meeting with Polish team in Kraków and, again, looking at French requirements versus what the platform can deliver and trying to match them and see if it can work for LiTT. And of course, there is more potential to come in other geographies when the time is right for them. So to summarize my section today, I would like to say that SIG omnichannel model helps to modernize our sales system. This brings higher customer satisfaction, which is confirmed by our NPS, so omnichannel customers are happier, they say, and support our revenue growth. The customer surrounded by this kind of ecosystem buys more, and our sales force is also more efficient and productive when they use the system. And we clearly see development in the future, possibility in growing this digital meeting point for our customers and our people and, of course, in transferring potentially the model to other geographies. That's all from me, and I will now pass to Ian. Thank you.

Thanks, Marcin. So just very briefly, just to summarize this, modernization is clearly going to be key for us going forward. I think by design, Marcin was pretty brief on his own business today, but we are very happy to have what is a very strong business in what we think is really a very good market in Poland. In terms of e-commerce, we're leveraging what the good work that's been done there across the rest of the group, which we're pretty excited about. And I think modernization generally, as hopefully we get a flavor today, there's really great opportunities for us to continue to leverage those sort of technologies in the years ahead. So that's modernization. With that, I'll hand it over to Gavin again who will talk about specialism.

Brilliant. Thanks, Ian. We are heading towards the home straight here, so I appreciate your attention as ever. In terms of that sort of last plank that we spoke about, specialize, and what does specialize mean in terms of SIG as a business. And I appreciate, and it's quite deliberate, you look at a photograph like that, probably doesn't make you think of SIG when you see a nuclear power station being built. But this is the kind of end project that our specialist businesses are very, very much involved in. And we'll talk a little bit more about that sort of U.K. special market in just a moment. But what I think is really important for us as an organization is to make sure that we continue to accelerate in these specialist, more technical, niche, higher-returning areas. And just a few examples on one slide. So if we talk about innovative roofing, and we will talk a little bit more about it in just a moment. But there is something really quite interesting, quite exciting happening in terms of solar roofing in France. If you look at our specialist flooring systems in Germany, we mentioned that Germany doesn't have a roofing business, but it does have a specialist flooring business. And to give you some context, our specialist flooring business in Germany is about EUR 125 million a year of the German business is through that specialism area. Construction accessories in the U.K., there's one really important fact I want to make here about our construction accessories business. Our construction accessories business is not Screwfix. This is very much about specialist products going into civil and infrastructure projects, and I'll clarify a little bit more about that in just a moment. And then also specialist fabrication which, again, is about more niche, more technical product that, generally speaking, brings higher returns. So these are all areas that we see having really good potential for us going forward across the whole of the SIG Group. In terms of the U.K. specialist market, which I appreciate is probably the one that's more interest today, having separated that U.K. business into 3 opcos. We can really separate that specialist markets business into 2 quite clear sectors, first of all, being construction accessories, which is about GBP 78 million of revenue. And again, many of you will remember the Miers acquisition that was made by SIG in 2022. And that construction accessories piece is really driven by the specialism that Miers brought into the group. And then the other specialist markets businesses is made up of 13 separate small niche fabrication and manufacturing businesses, which we will talk about some, but we just can't talk about all 13, but it really is quite interesting when you start to sort of peel back that onion, looking at the different businesses that we have, the specialisms and the kind of returns that we can generate. But we see within that special markets business, the fabrication and the manufacturing and the construction accessories business in the U.K. driven predominantly by Miers, both as being great earnings growth potential for the group going forward. To try and sort of put a little bit of color around that sort of -- around the construction accessories market, just again, a little bit like we did with the building envelope but trying to show sort of in one picture the kind of areas that we are going into with this particular business. And when you look at really infrastructure, and you're talking about transport, you're talking about power, you're talking about infrastructure, you're talking about the water industry, these are all areas that within our construction accessories and special markets businesses, that we absolutely get involved in, which is quite a long way from where you would traditionally see SIG with insulation for a building and also dry lining and plasterboard. But all of those areas on one page. And by the way, the presentation will be available online later on. But all of those key areas for our specialist businesses as we see going forward. In terms of the kind of projects that we get involved in, it is that sort of public infrastructure, large-scale projects. The 2 photographs that you can see there, the one on the left, by the way, I appreciate as a picture, it's difficult to work out what a half-built nuclear reactor can look like. But that is Hinkley Point. And I think it's fair to say that from a management perspective, we would say, the group was fairly late to the party in terms of Hinkley Point and our construction accessories business, but that is a project that currently now we are selling millions of pounds' worth per year into Hinkley Point in exactly the same way with Phase 1 of HS2. We are now selling millions of pounds' worth of product into HS2, and there's a lot of years left in that first stage of HS2 irrespective of what happens in terms of the second stage. And when you look at a project like Hinkley Point and the relationships that we're building with those core Tier 1 contractors, stands us in very good stead for projects like [ size will be ] going forward as well. But really, specialist product dealing into very, very specialist markets. In terms of that collection of businesses and that collection of brands, and I'm sure some of you will find the time when you're sitting just to scribble these names down and then sit online and have a look at the individual businesses and realize just how interesting they really are. But if you look at some of these brands, so as an example, across the top line, Ockwells. Ockwells supplies temporary protection for new build and certain rent renovation projects. So sort of you may think, if you go on to a new build housing development, you go into a house that's almost finished, there'll be protection around things like staircases, kitchen units, sanitary ware. We manufacture and sell all of that protection equipment going out to new house builders. We also have approval here from the IMO, the International Maritime Organization, as we actually have some specialist products that go into cruise ship refurb as well. If you look at the bottom line, Ocula, that is our own private-label partitions manufacturing business. If you look at AIM in the middle there, acoustic insulation manufacturers, very, very niche business based on an industrial estate in Crawley, not far from Gatwick, very profitable, great returns coming out of that business and something that is very technical, very niche and quite different to what we do. Steadmans is an interesting business. If you look at the right-hand column halfway down, so historically, Steadmans was predominantly involved in manufacturing steel-based agricultural buildings, which I think even in anybody's world is quite niche in its own right. But recognizing the skills that Steadmans had and then you look at it and say, what else can we do with the expertise that we developed in Steadmans, that's a CGI of a gull wing canopy that's holding solar. We are now manufacturing these canopies at Steadmans because basically, it's a steel manufacturing business. But if any of you are any ever passing Carlisle and want to pop in and see the manufacturing facility we have there, I'm very happy to meet you in Carlisle. Actually, it's also got -- on the roof of the Steadmans building, it's got our largest single solar installation in the group on the roof of Steadmans as well. But we have got -- that's a CGI of a large one. We have got a real one at the manufacturing plant in Carlisle. And we recently started taking this product to market for the first time, and the level of inquiry, the level of interest is really quite staggering. We're also making the frames for ground-mounted solar farms. So sometimes if you drive past certain fields, you'll see a solar farm. They still need a steel framework underneath. So this is not about us getting into the sort of lower-margin areas of solar panels in the U.K. in large quantities. But it really is about the steel frames, the canopies, the building work, the construction that actually goes around it, but really very, very technical, very niche, great margin potential for us. In terms of sort of what we would term performance technology businesses but driven by specification and differentiated by their technical characteristics but really fabricating and customizing materials involved in acoustics, involved in vibration, involved in isolation, involved in fire, and what's quite interesting about these as well, you might automatically think, well, this is vertical integration, and it's being sold via the U.K. interiors business. If you take a business like AIM, the acoustic insulation manufacturing business, only about 20% of its output is sold through our own outlet. Everything else, we're selling third party direct into the market. So these really are quite key stand-alone businesses and very much driven by specification and project-specific. So very few of these businesses are sort of working capital-intensive. It's not really about making product and holding them on a shelf. This is about specification, project-specific and really building to order and really commanding a very nice return across the group. I mentioned earlier about some sort of innovation in solar panels that we've been working on in France. And I think it was the very first time I met Julien when I was down in Paris and started talking about this super lightweight semi-flexible solar panel that we've been working with the manufacturers in France. It's about 1/4 of the weight of a standard solar panel, which means particularly on flat roofing, you don't need to reinforce the roof to use this particular solar panel. And it's incredibly lightweight. It's incredibly easy to fit. It's incredibly effective. And we've been working with the manufacturers in France in how can we bring this to market. And I'm sure, if any of you talk to Julien after this, having a drink later, he will give you some kind of indication as to how big solar is for us in the French business. And even though it's growing from a lower base, it's still tens of millions of euros that we're selling in solar. And innovative products like this really play a part. We've also been working very closely with the manufacturer to help them to get the right approvals to bring it into the U.K. market, which will obviously give us a head start in terms of getting that particular product into the U.K. market. Not every one of these ideas that people have around the world are always successful, but a lightweight solar panel is really quite innovative. And the fact that you can put it onto a roof without having to do strengthening work is quite a differentiating point as well. I did mention our sort of EUR 125 million specialist flooring business in Germany. And again, from an acquisition point of view, some of you may remember the group made an acquisition of a business called Thermodamm. And Thermodamm brought more specialisms in this particular area into the group and now in Germany, absolutely seen as the market leader in this particular area. There's a couple of really interesting nuances here as well whereby in certain of our locations in Germany, we can take waste polystyrene of a certain grade. We can grind the polystyrene into sort of tiny pieces. We mix that polystyrene with a binder, and then that product is actually used as the base layer underneath screed flooring. So you're actually utilizing waste polystyrene as an insulating material in something that is quite differentiated. And it's quite a Germanic characteristic in the way of building, utilizing screed flooring. But again, when you're talking to your customer base and you can then talk about not only can we bring you these specialist flooring systems but also something quite unique and innovative in terms of the way that the insulation is brought to market, it sets you up as a great specialist. The barriers to entry in this particular market are also quite high. So having that EUR 125 million a year starting point is a great place to be. I don't know whether you can make it out, but the Thermo Blower vehicle that's there on the bottom, it's a specialist vehicle that you have to have to use this particular kind of product. And in terms of barriers to entry, those blowers are about EUR 400,000 each. So because of our market scale, because of what we've got already, it makes sense for us to have those and actually separates us and differentiates us from other people in that similar market. So in terms of specializing, one of the things that I think really can set us apart going forward is that we already have a very attractive portfolio of specialist businesses. And by separating out the reporting of the U.K., I think this gives us real visibility and real transparency over some of the positive aspects that SIG have got in terms of growth in specialized markets going forward. We already have in those businesses a real depth of expertise and specialism into these different kinds of markets. And I think particularly in that public infrastructure sector going forward, it gives us something that is quite clearly differentiated. It also creates opportunities in different geographies. We're in the early stages of discussions with Julien and his team about some of these construction accessories in the French market, but we are already now, from Miers construction products, moving certain products into the Irish market that we didn't have the ability to trade in before. So it's not just about these businesses in isolation in the U.K. They also bring future potential going forward. I think it's really important for us as we continue to look to grow the operating margin across the group, that these niche businesses maintain that differentiated margin profile, so making sure that we continue to develop and evolve in the areas where the margin that we can deliver is above the group average and continue to move the group's margin going forward. And certainly, those organic growth opportunities, as we mentioned earlier on, looking at some of the sort of legislation and regulatory tailwinds and what it means in terms of specialist products, we think specializing, being involved in more niche, more technical, higher-returning areas is definitely a major contributory factor to us moving towards that 5% margin target. And the specialized businesses, what's really important is they really aren't driven by volume. They are driven by technical expertise, and they are driven by being a real expert in the market in which we do. So very much in the home straight. I'll ask Ian if he would -- I'm sure Ian will be delighted to join me at the other lectern because that one hasn't been used yet this afternoon. We've saved it especially for the CFO. But just to summarize what we've been talking about this afternoon before we sort of move into Q&A. Ian?

Great. Thank you, Gavin. So we're now going to summarize what's been presented and wrap up the formal presentation before we take any questions. So I think, I certainly hope that we've provided substantially more color on what will drive the group margin up to and beyond 5% over time. Firstly, I'd clarify and remind you that we do see 5% as a mid-cycle medium-term target. What that means in reality is that delivering on these initiatives would enable the business to sustain margin performance in a range of around 4% to 6% in the medium term depending on where we are in the economic cycle. I think it's also important to be clear that we don't see 5% or indeed 6% as a longer-term ceiling on our margin potential. So turning to the slide. And the first lever there and the driver is growth. Gavin set out the growth drivers that we see in the market and our own capabilities and plans to grow in excess of that. In a model like ours, growth and the resulting operating leverage will always be a key driver of margin. And we think we're very well-placed now to leverage our fixed costs and drive extra capacity through our existing network and infrastructure. And in this bridge, we're assuming an average top line growth rate over the coming years of 4% to 5%, just for context, alongside normalized levels of inflation within our OpEx. Of course, if we can deliver more growth than that on the top line, there will be upside to that leverage. Secondly, under execution. So execution of those specific turnarounds that are already in progress in U.K. interiors and Benelux. We expect and are assuming here, as we've mentioned before this afternoon, that both get to a 3% margin. Over time, as Gavin said earlier, we'd expect higher, but given the starting points, we want to be realistic as regards the medium term. Thirdly, as you've seen, the modernization that Marcin and I talked about is very much about making us a better business to supply to, buy from and work for and ultimately to help drive growth, but it will also boost productivity. Whereas operating leverage is more about leverage of the fixed elements of the cost base, productivity clearly is about, firstly, reducing the more variable or semi-fixed elements of the cost base as a percentage of sales and, secondly, reducing the more fixed elements of the cost base where that can be done. On the latter, we've started on that recently with some simplification in the corporate center and the U.K. leadership structure, as Gavin mentioned. And both elements will continue to be a focus. And lastly, on here, Gavin just talked about specialism. So gross margin improvement driven by that acceleration in specialism that he talked about as well as optimizing mix, including own brand, as you've heard, and continually improving our disciplines around pricing, all will be key drivers. So these waterfall bars show the relative significance of these different drivers on that 3% bridge from 2% to 5%. We don't think it makes sense to publish specific numbers for each given the time frames involved and the inherent variability in some of them. But as you can see, they all contribute meaningfully. All of these elements are distinctly achievable in our view. So that's the bridge to the 5%. And now Gavin will talk about how things break down for each business and then wrap things up.

I think it's important that we recognize that to get to a 5% group margin target, there's got to be a structure that actually makes sense across the individual opcos when you've got a business that's sort of decentralized and federated in the way that we have. So what we've done is -- with the individual management teams is agreed what their medium-term EBIT target should be within each of those businesses. And this is a huge level of transparency in terms of where we are because we very clearly recognize that you can measure us against this going forward in terms of progress. But that is exactly what we wanted to do this afternoon. And you can see there that quite clearly, we've got some businesses that we believe up around that 6% to 7% operating margin level. And as we've said about businesses, like Benelux businesses, like U.K. interiors, getting to 3%, we think, would be a reasonable and sensible stepping stone. But overall, if we can move from where those margins were in the first half of 2023 over the medium term to those margin targets on the right-hand side, that will enable us to get the group to a 5% margin level. And as Ian said earlier on, that 5% margin level, transformational in terms of the profit generated across the group but also the cash that would come in on the back of that. So I think in terms of -- an overall summary of this afternoon, and it's interesting, sort of 2 and 3/4 hours, I think, has like rapidly gone by. But if I can summarize a few thoughts just to take away with you, what do we think about SIG? A differentiated pan-European specialist distribution business with some elements by giving greater transparency that probably weren't appreciated before. Great market positions. If you look at the geographies in which we operate, we're in really strong positions basically in the top 2 or 3 of all of the markets in which we operate. And we do believe that in the medium term, there are structural tailwinds there that will benefit us as well. Improving and increasing the operational excellence within the business, having that performance management culture that we believe has worked so well in France and generally getting to a point where we can look in the mirror and say, are we brilliant at what we do? And really getting to grips with the basics on a day-to-day basis. Making sure that productivity and modernization stays high on the agenda. Productivity can come in a number of different ways, but utilizing technology, thinking about the way that Marcin talked about his omnichannel offering and the increased spend you get from the customers, the increased loyalty you get from the customers, but really looking at modernization and productivity across the group for those efficiency gains. And then as I talked a moment ago about specialization, but really focusing on growth areas where we believe there are greater returns from those more specialized niche and technical areas where expertise and service certainly play a greater important part than just volume alone. And we think that over the medium term, from a shareholders' perspective, that really does create meaningful value creation. That, ladies and gentlemen, is the end of our presentation. Now we are going to move into Q&A. I'm sure you'd be disappointed if I didn't have to tell you about the logistics of the Q&A and how this is going to work, which is really important when you've got people following on the webcast. So I'm going to start with questions in the room. [Operator Instructions] And then if it's a difficult question, I'll decide which one of my colleagues is the right person to answer it for you. So as a starting point, we just come down the middle of the aisle here with the microphone, please.

Charlie Campbell at Liberum. Just one question to start with, please. On the U.K. Interiors business, 0.8% margin and target is 3%. What happens to the margin if you get kind of all the branches performing in line with the best-performing branch? Is that the sort of the number you're looking at? Is that -- is there a wide range of performance amongst the branches? Or is it more than that?

No. There is a wide range. And with -- some of the branches are turning over a few million, and some of the branches are turning over tens of millions. So there is quite a spread. And I think U.K. Interiors in particular, it's -- we think 3% is a reasonable place to aim for. I don't necessarily see 3% as an end point in that business. So it's not just the case of equating all of the margins to the best one and you get to 3%. Technically, you will get to a higher number there, Charlie. But I think we just need to work our way through where we are. And from an overall point of getting the group to 5%, if we get that U.K. Interiors business to 3%, then it's playing its part in moving the group to 5%. But there is quite a wide variance of performance levels, but driven primarily by a really wide level of turnover levels as well. I think Aynsley, just in front there.

Aynsley Lammin from Investec. I think I've got 3 actually, if I could just go through them. First of all, obviously, operational leverage on the upside for volumes. Could you just give us an idea of where volumes are relative to pre-pandemic or normal year? And it's quite a diverse group, it's interesting to see where they are. Secondly, just in the U.K., the 3 OpCos, how independent are they? Are they sharing the same brand? I know you mentioned 20% is -- was that across the whole specialist, but you split out that 200-odd million, where they're actually very separate with -- separate branches, et cetera? And then thirdly, you mentioned the federated nature of the group. I mean just interested, how much synergy is there across the different businesses? Could they all get to those target medium-term margins without belonging to SIG? Interested in how the kind of group benefits work.

I'll work backwards to the point where I'll let Ian answer the question on volumes at the end, and I'll start with your question number three and work backwards from it. So I think in terms of synergies. I think there's 2 different ways of looking at synergies, Aynsley. One is, well, is there a pure financial synergy. If you look at our supplier base, is there something that we can do there with regard to purchasing terms with regards to the way that we actually buy. And I think most people would recognize that getting those international purchasing synergies is really quite difficult. However, it does strengthen the relationship we have with that supplier base. So I think from a purely financial point of view, there is a level of synergy, but it's not something that is transformational. What I do think we get the benefit from in terms of synergies and back to your point about what would they get there without being part of SIG, in particular, when you think about -- we talked about Julien and those really innovative solar products, getting those into our U.K. business, that wouldn't happen if it wasn't part of SIG. If you think about when Marcin spoke about the omnichannel business that we do in Poland, transferring that into Germany, transferring that into LiTT, then that's all part of that sort of synergy base. So I think you've got to look beyond synergies as just being a number. You've actually got to look and say, what value are we bringing to the different parts of the group by looking at where we do things really well and taking those examples forward. In terms of the 3 U.K. OpCos, 3 quite different customer bases, so in terms of roofers, interiors and construction accessories in the special market. So from a point of view of we've got 3 managing directors and predominantly 3 separate customer bases. And in the vast majority of cases, they are separate branches. So when you look at, say, Miers Construction Products, it was an acquisition, Miers had its own branches. There are a small number of the SIG Interiors business in the U.K. that have almost like a subset of construction accessories within them. But primarily, we think there's value to be had across the larger contractors and on the infrastructure project, but it is pretty much 3 separate businesses, 3 separate MDs and 3 separate sets of customers.

Well, just on the first one, Aynsley, very broadly group-wide about -- it's obviously moving as we speak but broadly flat sort of versus pre-pandemic. And obviously, within that, there's some moving parts, there is a bit by geography. I would say broadly, things sort of net-net went up a bit and obviously have come down a bit this year. But broadly speaking, it's flat in terms of overall volumes versus pre-pandemic.

We've got microphones [indiscernible] Stephen.

Stephen Rawlinson from Applied Value. Gavin, you've been here about 9 months. Could you just -- I was very interested in what's going on in Poland. And if I go to other distribution meetings like this, there's a lot of emphasis on IT. IT both as a means of efficiency and as a means of selling and a means of differentiation and a means of support for your sales teams. Are you content with what you've seen so far in SIG? Are you content with the rate of progress that you believe you can make and the rate of different -- and the differentiation that IT developments might give you? Because there hasn't been the same degree of emphasis today that I've seen in others. And just one related question. There are some online-only building materials distribution people but we're far more familiar than anybody else in this room, I'm sure. Would you do order fulfillment on their behalf? Would you do you? And is that something that you would see as being able to replace if you are doing it?

Crikey. Yes, it's a good question. So in terms of like pace in terms of what I've seen and have we got the right momentum in the business. Look, across most businesses, most CEOs would stand here and say, look, it would be great if we could just go harder, faster, quicker, cheaper more. But I think from what I've seen, the reaction I've had from the management team, we've made really good progress in the 9 months that I've been here. And I think what the guys have really helped me to do is to understand what we've got. And I think what was really important coming in as a new CEO is really understand what we've got so that we can make really good informed decisions and informed choices on businesses, on people, on structure on how we take the business forward. I think one of the first people I met when I came in was a guy that Marcin mentioned, who's a guy called Bartosz, who really drove that omnichannel development within the Polish business. It's a very, very quick decision to say, well, Bartosz having a broader group role because when we were talking to Valerie, who's the Managing Director in LiTT who reports into Julien, she was saying, "I've got customers who are now asking me what can we do from a portal perspective, what can we do from an e-commerce perspective," because I don't think it really happened before. So I think a lot of what we've been doing and that development driven by technology, I think we're actually making really good progress. And flipping the end of this year to the beginning of next year, but sort of like very end of '23, beginning of '24, we will have those systems live in France and in Germany as well as in Poland. So I think we are making really good progress there, but driven by what the customers want. One of the benefits that we have, of course, in having separate ERPs across the group and the swings and roundabouts on that as well, but we're not sort of driven by every 3 or 4 years, the whole group has to have a refresh in terms of ERP systems as well. So we can actually pick and choose where we do that development based on the fact that their ERPs are in good shape, that they're well invested. We've generally got pretty good systems across the group. And I would say from an information point of view, there's nothing that I've asked for since I came that I haven't been able to get, but that is actually really good. Some of it is down to consolidation in the center. We've got some of the guys in the room today who work on that. But in terms of management information, everything that I have wanted, I've been able to get. So I think from where we are, when I came in, in February to where we are today, I think there's a lot of very good decisions being made. But importantly, I think, well-informed decisions, and I think we're in the right place. In terms of fulfillment on Internet only, it's very small. And I think one of the things from your pickup from the conversations that we've had today, hopefully, conversations that we'll have upstairs, this is driven by where can we make the margin, where can we get a differentiated margin rather than just doing more volume. And there is a slight issue in some of those fulfillment businesses where it can be relatively low margin. You've got transport costs, you've got the logistics costs doesn't always give you the level of differentiated margin that we would want going forward. We come all the way down the front to Christian.

Christen Hjorth from Numis. Two questions from me. First of all, on the U.K., is there sort of any particular structural reason or challenge that it might be more difficult to get to target margins? And I'm thinking maybe the Interiors business, particularly where that starting point is. And then second, just for Ian, I know there's 1.5x leverage is the target over the medium term? I suppose if I look back, 6 earnings have been quite volatile. So just sort of trying to understand why 1.5x on a sort of normalized basis is the right number.

Yes, sure. Thanks, Christen. So I mean so 1.5 in a pre IFRS 16, 2.5, 2.5 post. We think that -- we still think that's the right number. I think we've kind of explained why we are what we are. I think that's sort of fairly clear. We've got lots of room, et cetera, from a kind of leverage perspective. So we want to get that down. Now clearly, the market is variable that our earnings this year are going to be lower than last year. But we've got room. I think as we look forward, we don't -- we will keep a very close eye on that. We manage the balance sheet very carefully and diligently, and we'll see what the market looks like next year. But we don't have concerns on that front, and we think 2.5 is still absolutely the right target.

And just in terms of your margin targets and do I think things will be structurally more difficult. I mean operationally, there is some different challenges in different businesses. But that is why we've got different margin targets. So to get the group to 5%, we feel very confident about France getting to 7%, but that's why we set the 3% target in terms of U.K. Interiors. So it's why there just isn't a blanket 5% target because we do recognize you've got different challenges. The businesses are at different points of their evolution and different gross margin structures as well across different geographies and product groups. So I suppose the short answer to your question is yes, but that's why we've got different margin targets across the OpCo that build towards the overall 5%. We've got a -- is it Clyde? I can't look to it with the lights on.

Clyde Lewis at Peel Hunt. Very kindly put those margin targets up by sort of business unit. Be fascinating to get some sort of idea of how much variation there is in terms of return on capital, because obviously, margins times asset turn is going to get that sort of that very important metric as well. And clearly, the implication for sort of working capital following up on Christen's question, I suppose, in terms of the cash flow, are you going to have to put chunks more capital into some of those 3% margin business rather than 7% margin business? It obviously has an implication for that. The other sort of questioning area really was around M&A. I suppose where are you in terms of your thought processes? I mean [ not to the maps ] have gone up. We can see quite a few sort of holes in some areas, less so in others. Clearly, you're excited by the opportunities in construction accessories. So it would be useful to sort of understand your -- I suppose your appetite, but bearing in mind, again, those questions around leverage.

I'll let Ian come back to you on the ROCE point. Just in terms of M&A, look, we've not made any secret of the fact that there's a level of capital that we can spend at the moment. But until we start generating the higher margins and generating that free cash flow, we are limited in what we can do. That free cash flow would give us all sorts of optionality whether that is returning cash to shareholders through dividends, whether it's paring down debt, whether it's M&A. But I think what I can say to you is it would be more likely that we'd be looking at niche specialists and sort of differentiated businesses in terms of M&A that would bring us something different, both to the group and to the business as opposed to going out and buying another business that say just sold more plasterboard or sold more insulation. So I think there are some quite interesting opportunities. A lot of these businesses would be privately owned, so there's quite a long courtship in terms of getting to know them, getting to understand the owners, understanding the value that they can bring. I think anything that we do on M&A, Clyde, we would be incredibly careful. We set incredibly high barriers, but more likely to be sort of leaning towards those specialist markets rather than anything to do with sort of high volume.

ROCE, I think, no. I mean the short answer on the second part of that question, Clyde, is do we need more capital into those lower-margin business today? Short answer is no. I think the -- it's really about execution and all the things we've been talking about today. In terms of the variability of ROCE, I mean, yes, there is variability. It's quite considerable across the piece. As you can imagine, it very largely mirrors the different piece of that and the margin. But U.K. Interiors is low. I mean Benelux is obviously a bit different make in their loss today. But U.K. Interiors is a bit different. The key driver there is obviously getting the margin profit up. The capital employed bit is a bit more -- is a bit heavier in U.K. as well, just given some of the legacy sort of estate that we've got and the commitments there. But -- so UKI, much as in the margin, UKI is the area we need to focus on from a ROCE perspective.

I'm very conscious that people in the room will have the opportunity to question us upstairs. So I'm just looking at my colleagues at the back and saying, have we got any questions that have come down the phone line? And do we have any questions that have come online via the webcast? Excellent news. In that case, Mark, we'll take your question before we sort of break the afternoon up and move upstairs.

Mark Howson from Dowgate Capital. Just to help me, I'm a bit of a thicky. I'm just going back through my notes that are scribbled out about specialist business. What portion of your revenue is it now? And where do you see it going by the end of the period?

Okay. I mean if you look at the U.K. specialist markets business, it's about GBP 220 million of revenue. But then if you look at other specializations, I mean, like in Germany, you've got EUR 125 million of sort of specialist flooring business. So I think with where it is now adding it all up, you're probably getting somewhere up towards that kind of 0.5 billion, Mark. But I think the shape of the group will change, Mark, in terms of if we can continue to grow in those higher-margin niche areas, improving the margins in businesses like U.K. Interiors but not necessarily by trying to improve the margins in U.K. interiors by just taking more volume. It's about doing what we do better. When Ian showed the numbers at the very beginning, you'll notice, we haven't significantly changed the way that the group is put together in terms of overall turnover. We're talking about -- we talked about GBP 3 billion at 2% and then what GBP 3 billion at 5% might look like. I'll leave bright guys like you to do the math if it's kind of GBP 4 billion at 5%. But I think we do see the shape of the group changing, but I wouldn't want to get into specifics now of exactly what I think those specialist businesses could be over that 3- to 5-year period, but I would say significantly greater than they are today. I think at that point, ladies and gentlemen, as we've got no questions online and people in the room have the ability to join us upstairs, I would say thank you for your attention over the last 3 hours. Really appreciate your interest in SIG. I would encourage you to question some of my colleagues, particularly Alfons from Germany, Julien from France, Marcin from Poland and David from Newcastle. And I'm not even going to get drawn into an argument as to which one you might find harder to understand, but really appreciate your attention. Really appreciate your interest and look forward to sharing a drink with you upstairs. Thank you very much indeed. Thank you.