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Strategic Overview of AEP's Sustainable Solutions and Market Opportunities

This comprehensive market overview outlines AEP's strategic direction in developing a competitive and sustainable Low Carbon Technology (LZCT) portfolio. Focusing on integrated solutions such as solar collectors, heat pumps, and smart home systems, AEP aims to penetrate key sectors: Social Housing, New Build, and Private Repair, Maintenance, and Improvement (RMI). The strategy includes reducing portfolio complexity, investing in breakthrough products, and targeting growth in commercial and industrial systems. AEP is poised to capitalize on significant opportunities, especially within the Private RMI sector.

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Strategic Overview of AEP's Sustainable Solutions and Market Opportunities

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  1. Market Overview - Portfolio Summary Portfolio Summary – Space Heating Portfolio Summary – Hot Water Portfolio Summary – Ventilation • Space Heating • Urgently develop a competitive & sustainable LZCT portfolio & position AEP as a solutions provider of integrated technologies:- • Solar Collectors, Heat Pumps, Whole House (Home Systems) & Gas (subject to internal competency) • Develop ‘closer to home’ opportunities:- • LST, Towel Rails • Hot Water • Develop a breakthrough range of Thermostatic & Mixer Showers • Ventilation • Grow:- Industrial, Commercial & Home Systems through product investment & commercial focus • Milk:- Cooker Hoods & Heating & Air Treatment through range rationalisation / cost reduction & above average price increases • AEP / Strategic Direction • Reduce overall Portfolio complexity – remove underperforming SKUs • Milk low movers / none strategic ranges through cost reductions & price increases

  2. Market Overview – Sector Summary • AEP activity should be targeted towards three key sectors:- • Social Housing • New Build • Private RMI • (The Care sector should be regarded only as an incremental opportunity) • Private RMI represents the biggest opportunity for AEP – to date no resources have been allocated to this sector • Social Housing & Private New Build should be the core focus of the AEP sales teams • These sectors are subject to 1) Legislative drivers, 2) Focus on partnering & support, 3) Significant investment Market Sector – New Build Market Sector – Social Housing Market Sector – Care Portfolio Summary - Sectors

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