RS Group (RS1) Investor Update summary

Strategic Direction and Market Positioning

• Focused on medium- and long-term growth, aiming for value creation and market share gains in fragmented, high-growth industrial markets, with a serviceable addressable market over £130bn.

• Targeting revenue growth at twice the market rate, sustainable mid-teen operating margins, and cash conversion upgraded to over 80%.

• Differentiated by a high-service, technically led, digitally enabled model, with a broad product range, strong supplier partnerships, and over 800,000 stocked products serving 1.1 million customers.

• ESG and sustainability are integral, with a 2030 action plan, a growing Better World product range, and significant reductions in carbon emissions.

• Significant investments in people, digital platforms, and operational excellence to drive efficiency, scalability, and customer loyalty.

Operational and Financial Execution

• Implemented a simplified operating model with clear accountability, regional focus, and accelerator/enabler functions.

• Ongoing investments of £35–45 million per year in strategic initiatives, including digital transformation, customer experience, and process harmonization.

• Identified over £30 million in cost savings and approximately 150bps margin improvement targeted through efficiency and process enhancements.

• Upgraded cash conversion target to over 80%, with disciplined capital allocation and a focus on high-ROCE organic and inorganic growth.

• M&A is used to accelerate strategy, with a disciplined, value-focused approach and a healthy pipeline, focusing on geographic expansion, solutions, and operational efficiencies.

Regional and Segment Strategies

• EMEA: Prioritizing growth in the UK, Germany, France, and Italy, focusing on high-value customers, digital penetration, and operational leverage.

• Americas: Leveraging technical strengths and digital assets to expand share of wallet, with recent acquisitions contributing positively.

• APAC: Evolving to a more localized, value-driven approach, targeting high-value customers and industrial segments.

• Regional strategies are tailored: EMEA focuses on broad solutions, Americas on technical A&C and electrification, and Asia Pacific on local capability and curated products.

• Services and solutions drive customer stickiness and product pull-through, especially in EMEA, with digital and human touch combined for differentiation.