Tyman : Financial Reporting Document

Tyman plc

Annual Report and Accounts for the year ended

31 December 2022

he T

e

x

p

n

for

m

a

s

s

r

t

t

a

h

t

h

c

u

o

t

t

r

e

Tyman is a leading international supplier of highly-engineered door and window components and access solutions to the construction industry.

Summary Group Results

Revenue	Adjusted EPS	Leverage
£715.5m	34.7p	1.0x
2021: £635.7m	2021: 32.1p	2021: 0.9x
Adjusted operating profit	Basic EPS	Adjusted net debt
£94.6m	24.6p	£116.0m
2021: £90.0m	2021: 25.4p	2021: £91.7m
Profit before taxation	Dividend per share
£61.4m	13.7p

2021: £64.0m

2021: 12.9p

Highlights:

Performance at upper end of expectations despite challenging macroeconomic backdrop

• Revenue growth of 13%, with LFL growth of 5% reflecting successful pricing actions and share gains, partially offset by lower market volumes, including the exit from Russia
• Adjusted operating profit growth of 5%, with a LFL decline of 3% reflecting lower volumes, including the exit from Russia; operating profit decline of 3%
• Adjusted operating margin decline principally reflects the dilutive impact of the pass-through of cost inflation
• Good progress with our strategic initiatives:
• • Share gains, driven by innovation, market expansion and executing well with customers
  • Structural margin enhancement activities, including further footprint optimisation, ERP upgrade, factory automation and process enhancement projects
• Further external recognition of our sustainability credentials; 90% of funding now linked to sustainability performance following successful debt refinancing
• Full year dividend increase of 6%, reflecting growth in adjusted EPS of 8% and confidence in the Group's future growth prospects

Contents

Strategic report
Highlights	1
Why invest in Tyman?	2
Chair's statement	4
Our purpose and values	6
Our products	8
Our brands	13
Our business model	14
Our markets	16
Our divisions	18
Our geographical reach	19
Our strategy	20
Key performance indicators	24
Chief Executive Officer's review	26
Operational review	30
Financial review	36
Managing risk	42
Climate-related disclosures (TCFD)	50
Sustainability performance	70
Section 172 statement	80
Going concern and viability	84
Non-financial information
statement	87
Governance report
Board of Directors	88
Directors' report	90
Chairman's introduction	93
Statement of governance	95
Nominations Committee report	105
Audit and Risk Committee report	108
Remuneration report	115
Financial statements
Independent auditors' report	140
Consolidated income statement	147
Consolidated statement of
comprehensive income	148
Consolidated statement of
changes in equity	149
Consolidated balance sheet	150
Consolidated cash flow statement	151
Notes to the financial statements	152
Company balance sheet	201
Company statement of
changes in equity	202
Notes to the Company
financial statements	203
Alternative Performance
Measure reconciliations	208
GRI Standard Content Index	216
Definitions and glossary of terms	218
Roundings and exchange rates	220
Five-year summary	221

Annual Report and Accounts 2022

Tyman plc

01

Strategic Report

Why invest in Tyman?

Favourable megatrends, differentiated value-creation and high cash generation support long-term growth.

Favourable	Compelling customer	Sustainable
megatrends	value-creation	growth potential

• Global population growth together with demographic and social change drives construction and remodelling activity
• Housing market fundamentals, notably housing shortages and an ageing housing stock in the USA, support both construction and remodelling activity
• Climate change demands more energy efficient buildings, supported by enhanced building codes and rising sustainability awareness amongst consumers, with product certifications getting stricter
• Increasing technology advances and post-pandemic changes to lifestyles and the use of homes raises expectations for improved aesthetics and ease of use

• Our highly-engineered products create strong value for customers and end-users relative to their cost
• Our market-leading brands, extensive portfolio of differentiated products, and innovation capabilities make us a strategic partner for our customers
• Our value-added services, including co-development, application engineering, integrated supply chain and accredited testing, underpin our long-term customer relationships and high levels of repeat business

• High barriers to entry as a result of our deep customer relationships, the heritage and reputation of our brands, our extensive product and application expertise and world- class facilities across our global footprint
• Our scale allows us to continually invest in our organic growth through innovation and operational excellence
• Our high levels of cash generation and strong balance sheet provide funding flexibility for future expansion, including further acquisitive growth with Tyman the natural consolidator in a fragmented industry
• Our diversification across geographies and commercial and residential markets provides resilience against major changes in the market environment

Read more about our markets on pages 16 to 17.

Read more about our products and brands on pages 8 to 13.

Read more about our business model on pages 14 to 15.

02 Tyman plc

Annual Report and Accounts 2022

Strategic Report

Case study

Protecting commuters at Grand Central Station, New York City

The infrastructure segment of the US construction market is currently one of the fastest growing sectors of the market, benefitting from funding at federal, state, and local levels. Bilco has a leading position in the provision of fire-rated access doors and panels to the public and commercial construction markets.

What was the challenge?

The Metropolitan Transit Authority (MTA) in New York City recently completed the largest capital project in their history to expand their service to Long Island and provide a much-needed expansion to the Grand Central Terminal. The centrepiece of the project is a new 350,000 square foot passenger concourse underneath Grand Central Station that includes 800,000 feet of underground raceways, 7,000 light fixtures, seven power stations and two off-track facilities. The MTA required a solution to access various plumbing and electrical connections through a fire-rated floor.

How did Tyman develop a solution?

Bilco and its local representative designed and developed a range of doors that met both the size requirements and the critical life safety and performance demands of the application.

Amid all the tunnels and junctions for electrical and plumbing fixtures, 53 fire-rated floor doors manufactured by Bilco have now been installed. Each fire-rated floor door is constructed with door hardware and sealants to maintain the fire-rating. Bilco's type FR fire-rated doors, often found in public buildings, office buildings and exit stairwells, are the

industry's only UL listed fire-rated floor door. The UL listing indicates that it has been tested and certified to maintain its integrity in the event of a fire for up to three hours. The doors also incorporate a separate UL listed self-closing device that automatically closes the door in the event that the door is open when a fire breaks out.

What value does this create?

Bilco's UL listed fire-rated floor doors provide the highest levels of quality and fire protection, attributes that are essential for such an important public infrastructure project. In addition to the fire protection provided, the FR door also allows for the installation of finished flooring in the cover, enabling the door to blend with the aesthetics of the new passenger concourse at Grand Central Station.

"These doors provide a continuation of the regular floor,'' said Jason Benfield of Tutor Perini, the civil engineering team working on the project. "If a fire breaks out, these doors provide access and give people the chance to get out to an adjacent space. If they weren't fire-rated, smoke or fire could pass through the door and into the public area."

Annual Report and Accounts 2022

Tyman plc

03