RS Group (RS1) Investor Update summary

Strategic Direction and Market Positioning

• Focused on medium- and long-term growth opportunities, aiming to outperform market growth and deliver mid-teen operating margins over time.

• Positioned in large, fragmented, and growing industrial MRO markets, with a differentiated, technically led, digitally enabled proposition enabling share gains and sustainable value creation.

• Addressable market estimated at over £130 billion globally, with significant runway for growth and low current market share in all major geographies.

• Benefiting from macro trends like Industry 4.0, electrification, automation, and supply chain consolidation, supporting above-GDP growth in core categories.

• Consistently outperforms market growth, achieving a 6.4% LFL revenue CAGR over 15 years, about twice the global GDP growth rate.

Operational and Cultural Transformation

• Implemented a simplified operating model, clarified strategic focus, and enhanced accountability across regions and functions.

• Embedded new corporate values and a unified culture, driving performance, collaboration, and innovation.

• Invested in talent, leadership development, and diversity, with high employee engagement and external recognition.

• Enhanced performance management with clear KPIs and integrated monitoring to accelerate execution.

• The executive team brings deep experience in value creation, transformation, and operational excellence.

Customer, Supplier, and Product Strategy

• Serving over 1.1 million industrial customers globally, segmented by value and engagement, with a focus on high lifetime value accounts.

• Broad and deep product range, reorganized into seven technical categories, with over 800,000 stocked products and 5 million sourced items.

• Strategic supplier partnerships and curated product expansion, leveraging digital and technical capabilities to drive mutual growth.

• RS PRO, the company’s own brand, accounts for 13% of group revenue and is a key differentiator, with high first-order inclusion and low return rates.

• Sustainability is embedded, with a growing Better World product range and industry-leading ESG frameworks for customers and suppliers.