Slide 1: Delivering on our ambitions
B FRANCHISE BRANDS Franchise Brands ple Delivering on our ambitions
Slide 2: Disclaimer
Disclaimer The information contained in this document (“Presentation”) and the presentation made to you verbally has been prepared by Franchise Brands plc (the “Company’). Franchise Brands plc is a UK company quoted on AIM, a market operated by London Stock Exchange ple. This Presentation has not be
Slide 3: Contents
2023 Annual Results Presentation 2 “If they grow, we grow” @ Contents 03 introduction to 20 B2C division Franchise Brands We are focused on building, developing and growing market-leading franchise O4 2023 results summary 21 Digital transformation business 05 Franchise Brands: 22 Financials at a gla
Slide 4: Overview of Franchise Brands
Overview of Franchise Brands wl we are Multi-brand franchisor, focused on B2B van-based service with a presence in 10 countries across UK, North America and Europe. Pirtek, Metro Rod and Metro Plumb provide essential services to B2B customers on a mostly reactive basis. Filta provides a planned serv
Slide 5: Franchise Brands at a glance
Ata glance Our leading brands Pirtek* Leading European provider of on-site hydraulic hose replacement services. £13.3m Adjusted EBITDA** 73 Total franchisees * Contribution since 21 April 2023 Water & Waste Services Drainage, plumbing, pumps maintenance and repair services and FOG services to commer
Slide 6: Financial & operational highlights
Financial & operational highlights F3 50.1 mM 8 4? p Another year of momentous change for the business with the acquisition of Pirtek Europe Ltd for £210.8m funded by £100m of System sales Adjusted earnings per share** bank debt and £114.3m of equity which has again doubled the size +88% 2022: <186
Slide 7: Divisional performance
Divisional __ performance — A Fi
Slide 8: Pirtek at a glance
Pirtek at a glance UK& Germany Belgium & Ireland & Austria Netherlands France Sweden TOTAL Germany Netherlands .. 1998 1997 2021& Established 1988 Austria Bela 2022 2017 2014 1998 system sales ss6ém 47m 16m 5m 62m £126m mand 0} 44% 37% 13% 4% 2% 100% total Franchisees 40 22 " - - 73 Service centres
Slide 9: Pirtek
Pirtek + The resilient underlying demand for Pirtek’s essential reactive services resulted in the division trading at record levels during eight months of ownership in 2023: — 10% increase in System sales in 12M 2023, and 14% increase in Adjusted EBITDA in local currency and 10% increase in Adjusted
Slide 10: Pirtek Europe
Pirtek Europe System sales Revenue Cost of sales Gross profit GP% Administrative expenses Divisional Adjusted EBITDA Adjusted EBITDA as a % System sales Franchise £000 118,687 34,771 (9,954) 24,817 71% (11178) 13,639 1.5% DLO £'000 7,292 (1,570) 5,722 78% 5.8% 2023 £'000 125,976 41,947 (11,408) 30,5
Slide 11: Pirtek Europe — by country
Pirtek Europe — by country UK & Germany & ROI Austria Benelux Sweden 2023 + UK and Rol £000 £000 £'000 £000 £'000 49% A atutory from MSF on 125,976 System sales Germany & Austria pratutory 16,242 10943 7,586 1,862 5,430 (116) 41,947 ; J EBITDA. Cost of sales (4,887) (3,260) (1808) (255) (1315) 116 (
Slide 12: Water & Waste Services division — at a glance
Water & Waste Services division — at a glance METR® METRQ PLUMB = WILLQW Established 6 ed Water & Wa Servi ision Acquired Aoi AoW aos aoe: encompasses Metro Rod, Metro Plumb, Kemac, and the UK vities of Filta. System sales 66 10 19 12 £107m Divis £m (% total) (62%) (9%) (18%) (11%) (100%) wan Franch
Slide 13: Continued strong growth
Continued strong growth Metro Rod and Metro Plumb delivered continued strong momentum, METR ROD with system sales growing by 20.3% to £71.6m. Rate of growth slowed in 2H to 16% compared to 24% in H1. Planned reduction in dependence on fixed price, high volume, emergency work with no upside potential
Slide 14: Continued development of Willow Pumps and Filta UK
Continued development of Willow Pumps and Filta UK Increased revenue by 2.7% to £18.7m following a significant slowdown in H2 — New managementteam — Shifted business mix from high revenue, low profit work WILLQW P — Launch of special projects division - capital light, higher margin business managing
Slide 15: Water & Waste Services division financial results
Water & Waste Services division financial results 2023 2022 + Metro Rod accounted for 70% divisional Adjusted EBITDA. Increased by 20% to £7.6m Metro Willow Filta Metro Willow Filta Change — Metro Rod and Metro Plumb system sales Rod Pi UK — 2023 Rod Pt UK 2022 % ° umes ° umps increased 20% to recor
Slide 16: Filta North America at a glance
Filta North America at a glance filta Oil removed from fryer into mobile filtration unit, micro filtered to remove impurities Fryer cleaned via vacuum-based cleaning service Clean oilreturned to fryer 8,500 Customers serviced per week filta Provided as part of FiltaFry filtration service Oil removed
Slide 17: Waste Oil, 2018 to 2023
Waste Oil, 2018 to 2023 $50m $0.70 47m Ibs $45m $0.60 $40m $35m $0.50 $0.46 $30m $0.40 $25m eam $0.30 GEa Oso $0.22 $0.22 $11.9m $0.20 $10m $6.3m $0.10 $5m $4.6m $4.7m CA $3.9m $3.7m $0m 2018 2019 2020 2021 2022 2023 mmm System Sales ($m) mmm Gross Profit ($m) —Volume (lbs) —Avg Price achieved $ per
Slide 18: Filta International
Filta International North America £000 Europe £'000 sata | wrens sue Revenue 26,506 (17,011) 9,495 (3.17) 6,324 7.3% 611 (338) 273 29% 2023 £000 90,482 27,117 (3.215) 9,768 36% (3.671) 6,097 6.7% North America £000 66,700 23,273 (15,398) 7,875 34% (2.516) 5,359 8.0% Europe £000 2,860 477 (261) 216 (
Slide 19: B2C division
B2C division ChipsAway ovénclean LUKE IT NEVER HAPPENED Barking Mad Franchise recruitment and retention environment continues to be challenging. Notwithstanding this, franchise recruitment in 2023 matched 2022 with 39 new franchisees and the number of leavers declined from 69 to 59. Overall, closed
Slide 20: Digital transformation
Digital transformation “ 2023 Annual Results Presentation 19 + Most of the objectives from the 3-year digital transformation journey we started in 2020 have been met. + Opportunities to leverage our scale and new technologies, improve reliability and security. + Creation of new centralised IT functi
Slide 21: Financial performance
Vivay Financial ; performance |
Slide 22: Prior year adjustments
Prior year adjustments + Following the Group’s recent material acquisitions we have extensively reviewed our accounting policies to ensure they comply with the latest accounting standards and are consistent across the enlarged Group. + The overall impact of the adjustments in 2022 is a reduction in
Slide 23: Summary of group results
Summary of group results Statutory revenue Adjusted EBITDA jon and amortisation 2023 £000 350,053 121,265 (50,060) 71,205 59% (41,104) 30,101 (4.417) (5,807) (146) 19,731 (5,153) 14,578 8.6% 2022 £000 186,353 69,839 (33,898) 35,941 515% (20,684) 15,257 (2,281) (235) 28 12,742 (2.561) 10,181 8.2% Cha
Slide 24: Adjusted and statutory profit
Adjusted and statutory profit 2023 2022 Change Change + Software deprecation and amortisation increased 80% £000 £000 £000 % to £4.1m primarily due to the acquisitions of Pirtek and the 12M impact of the Filta acquisition. Adjusted profit after tax 14,578 10,181 4,397 43% + Finance expense reflects
Slide 25: EPS and dividend
EPS and dividend Adjusted profit before interest after tax Interest after tax (at 25%) Adjusted profit after tax Dividend cover (based on Adjusted profit after tax) 2023 = EPS/DPS £000 p 18,861 10.90 (4,283) 14,578 8.42 173.1m 1.00 1.20 2.20 3.9x 2022 EPS/DPS Change £'000 10,371 (190) 10,181 122.1m
Slide 26: Cash flow summary
Cash flow summary Shortform cashflow Adjusted EBITDA ital movements Cash generated from operations % of adjusted EBITDA Cashflow from CapEx, interest, taxes & dividends Purchase of PPE, e & IP Interest paid bank and other loan Other net movements Net Cash Movement Net at the beginning o Exchange dif
Slide 27: Debt
Debt Term loan Hir bt Adjusted (net debt)*/net cash Other lease debt (Net Debt)/Net cash Adjusted net debt/Adjusted EBITDA 31 Dec 2023 £000 12,278 (50,000) (36,908) 749 (837) (74,718) (7,567) (82,285) 2.48x 31 Dec 2022 (restated) £000 10,935 (1132) 9,803 (1,624) 8,179 Change £000 1,343 (50,000) (36,
Slide 28: Capital allocation
Capital allocation =| Medium term © capital allocation priorities capital allocation priorities Strategic focus is on integrating Pirtek and Acquisitions of franchise businesses and Filta into the Group, promoting operational bolt-on DLOs that drive franchise channels. synergies and repaying acquisi
Slide 29: Summary and Outlook
Summary and Outlook + Key divisions achieved record results in 2023 despite some softening in demand in H2 in the construction and hire-fleet customer sectors (which has continued into 2024). This demonstrates the resilient underlying demand for the Group’s essential reactive services. + The fall in
Slide 30: Appendix
Slide 31: Divisional trading results
Divisional trading results 2023 2022 Filta Inter-co Filta Inter-co W&WS International Pirtek B2c Azura_ elimination 2023 W&WS International B2c Azura elimination 2022 £'000s £000s £'000s £'000s £000s £000s £'000s £'000s £000s £'000s 000s 1000s £'000s ——systemstes 90,482 125,976 26,189 745 350,053 90
Slide 32: Strong track record of delivery
Strong track record of delivery System sales Adjusted EBITDA Adjusted earnings Dividend (£m) (£m) per share (p) per share (p) 2021 | £93.6m 2021 i £8.5m 2021 || 5.55p 2021 . | 41.50p 2020 | £75.8m 2020 cs.om 2020 || 4.35p 2020 || 1.10p 2019 | £75.2m 2019 | £5.2m 2019 | | 4.34p 2019 || 0.95p
Slide 33: Enhanced corporate governance
Enhanced corporate governance In line with the expansion of the Group and our ambition for the future, in 2023 we developed our corporate governance structure by reorganising the board and introducing a two-tier organisation. More streamlined board fee) OW 2 Executive Directors: + Executive Chairman
Slide 34: Franchise Brands contact details
FRANCHISE BRANDS www.franchisebrands.co.uk Franchise Brands plc Ashwood Court Tytherington Business Park Macclesfield SK10 2XF mail@franchisebrand 01625 507910 www.pirtek.co.uk METRO www.metrorod.co.uk www.metrorod.co.uk WILLQW PUMPS www.willowpumps.co.uk Za filta www~ilta.co.uk www.gofilta.com www<