Results for the three months ended October 31 2021

Companies

Ferguson (FERG)

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US$ (In millions, except per share amounts)	Q1 2022		Q1 2021		Change
	Reported¹	Adjusted²	Reported¹	Adjusted²	Reported	Adjusted
Net sales	6,803	6,803	5,372	5,372	+26.6%	+26.6%
Gross margin	31.3%	31.3%	29.6%	29.6%	+1.7%	+1.7%
Operating profit	739	767	450	484	+64.2%	+58.5%
Operating margin	10.9%	11.3%	8.4%	9.0%	+2.5%	+2.3%
Earnings per share - diluted	2.40	2.50	1.40	1.52	+71.4%	+64.5%
Adjusted EBITDA		814		524		+55.3%
Net debt² : Adjusted EBITDA		0.6x		0.5x

Ferguson plc
Brian Lantz, Vice President IR and Communications	Mobile:	+1 224 285 2410
Pete Kennedy, Director of Investor Relations	Mobile:	+1 757 603 0111

Media enquiries
Mike Ward, Head of Corporate Communications	Mobile:	+44 (0) 7894 417060
Nina Coad, David Litterick (Brunswick)	Tel:	+44 (0) 20 7404 5959
Jonathan Doorley (Brunswick)	Tel:	+1 917 459 0419

Dial in number	UK:	+44 (0) 20 3936 2999
	US:	+1 646 664 1960


Virtual Investor Day	January 13, 2022
H1 Results for period ending January 31, 2022	March 15, 2022

(In millions, except per share amounts)	Three months ended October 31,
	2021		2020¹
Net sales	$	6,803	$	5,372
Cost of sales	(4,676)		(3,780)
Gross profit	2,127		1,592
Selling, general and administrative expenses	(1,314)		(1,074)
Depreciation and amortization	(74)		(68)
Operating profit	739		450
Interest expense, net	(28)		(28)
Income before income tax	711		422
Provision for income taxes	(176)		(106)
Income from continuing operations	535		316
Income from discontinued operations (net of tax)	25		19
Net income	$	560	$	335

Earnings per share - Basic:
Continuing operations	$	2.42	$	1.41
Discontinued operations	0.11		0.09
Total	$	2.53	$	1.50

Earnings per share - Diluted:
Continuing operations	$	2.40	$	1.40
Discontinued operations	0.11		0.09
Total	$	2.51	$	1.49

Weighted average number of shares outstanding:
Basic	221.4		223.6
Diluted	222.7		225.6
1 The Company disposed of its UK operations on January 29, 2021. As such, the UK results have been reclassified to discontinued operations in the prior year comparative results.

(In millions)	October 31, 2021		July 31, 2021
Assets
Cash and cash equivalents¹	$	2,166	$	1,335
Accounts receivable, net	3,066		2,786
Inventories	3,660		3,273
Prepaid and other current assets	777		707
Assets held for sale	3		3
Total current assets	9,672		8,104
Property, plant and equipment, net	1,302		1,305
Right-of-use assets, operating leases	1,116		1,102
Goodwill	1,883		1,828
Other non-current assets	1,341		1,361
Total assets	$	15,314	$	13,700
Liabilities and shareholders' equity
Accounts payable	$	3,213	$	3,030
Other current liabilities¹	3,192		1,683
Total current liabilities	6,405		4,713
Long-term debt	2,271		2,528
Long-term operating lease liabilities	796		827
Other long-term liabilities	685		629
Total liabilities	10,157		8,697
Total shareholder's equity	5,157		5,003
Total liabilities and shareholder's equity	$	15,314	$	13,700
1 As of October 31, 2021, these line items include $1.1 billion in equal and offsetting amounts within cash and cash equivalents and short-term debt related to the Company's cash pooling arrangements which are presented on a gross basis. This does not represent new debt to the Company.

(In millions)	Revenue Q1 2022		Revenue Q1 2021¹		Change	Adjusted operating profit² Q1 2022		Adjusted operating profit² Q1 2021¹		Change
USA	$	6,418	$	5,050	+27.1%	$	752	$	472	+59.3%
Canada	385		322		+19.6%	34		23		+47.8%
Central costs	-		-		-	(19)		(11)		+72.7%
Continuing operations	$	6,803	$	5,372	+26.6%	$	767	$	484	+58.5%
1 The Company disposed of its UK operations on January 29, 2021. As such, the UK results have been reclassified to discontinued operations in the prior year comparative results. 2 See reconciliation of net income to adjusted operating profit from continuing operations in the non-GAAP reconciliation section. The Company uses adjusted operating profit as a measure of segment profit under U.S. GAAP.

(In millions)	October 31, 2021		October 31, 2020²
Long-term debt	$	2,271	$	2,631
Short-term debt¹	1,356		1,484
Derivatives assets	(19)		(38)
Cash¹	(2,166)		(3,211)
Net Debt	$	1,442	$	866
1 As of October 31, 2021 and 2020, these captions include $1.1 and $1.2 billion, respectively, in equal and offsetting amounts within cash and cash equivalents and short-term debt related to the Company's cash pooling arrangements which are presented on a gross basis. This does not represent new debt to the Company.
2 A balance sheet as of October 31, 2020 has not been presented herein.

(In millions)	Four quarters ended as of October 31,
	2021		2020
Net income	$	1,697	$	1,008
Add: Net loss from discontinued operations (net of tax)	152		4
Add: Provision for income taxes	302		303
Add: Interest expense, net	89		91
Add: Other (income) loss	(1)		17
Add: Non-GAAP adjustments¹	6		100
Add: Depreciation and amortization	304		285
Adjusted EBITDA	$	2,549	$	1,808
Net Debt: Adjusted EBITDA	0.6x		0.5x
1 For the 12-month period ending October 31, 2021, the non-GAAP adjustments primarily relate to costs related to the Company's listing in the United States. For the period ending October 31, 2020, the non-GAAP adjustments primarily related to restructuring costs in response to the COVID-19 pandemic.