Slide 1: 2023 Full-Year Results
2023 Full-Year Results 7 March 2024
Slide 2: Forward-looking statements disclaimer
This presentation may include data information and statements relating to estimates, future events, trends, plans, expectations, objectives, outlook and other forward-looking statements relating to the Group’s future business, financial condition, results of operations, performance and strategy as t
Slide 3: Agenda
2023 business 2023 financials Step-up in CSR 2024 outlook Q&A highlights
Slide 4: 2023 business highlights
2023 business highlights
Slide 5: 2023: Another year of major operational and financial achievements for Elis
2023: Another year of major operational and financial achievements for Elis Strong 2023 financial performance: Improvement in Many commercial and operational achievements, all profitability KPIs, 35% increase in free cash flow underscoring Elis’ strong customer relationships and further deleveraging
Slide 6: Record 2023 revenue, driven by strong pricing and good outsourcing momentum
Record 2023 revenue, driven by strong pricing and good outsourcing momentum 2022-2023 revenue bridge Volumes +€68m -€30m ≫ Further outsourcing momentum drove many new contract wins, €4,309m especially for workwear in Southern Europe and Latin America +€340m ≫ Favorable comparable base in Hospitality
Slide 7: Many commercial successes in 2023 driven by ongoing outsourcing
Many commercial successes in 2023 driven by ongoing outsourcing and the roll-out of Elis’ offer across our geographies Strong momentum in Further market share gains Development of the pest Roll-out of Elis’ services workwear across the board in Healthcare control and cleanroom offer to small clients
Slide 8: Pest control up c. +28% per year on average since 2015
Pest control up c. +28% per year on average since 2015 2015 2016 2017 2018 2019 2020 2021 2022 2023 Revenue €8m €13m €18m €23m €26m €29m €34m €42m €59m Rebranding Markets addressed Rodents Flies Pest Offer Cockroaches Ants Mosquitos Bedbugs management Hornets Bacteria Small retailer Food industry Re
Slide 9: Cleanroom: A fast-growing market with second-to-none know-how
Cleanroom: A fast-growing market in which Elis has second-to-none know-how Key figures 2017-2023 revenue evolution (in million euros) ≫ Over 1,600 employees in 30 Cleanroom laundries ≫ Over 4,000 customers +11% revenue CAGR since 2017 236 ≫ Present in 17 countries on 2 continents 205 ≫ Over 1.6 mill
Slide 10: Multiple pricing initiatives implemented since 2022 to offset inflation
Multiple pricing initiatives implemented since 2022 to offset inflation-related cost increases The nature of the services provided by Elis and high- quality client relationships give us good pricing power Elis has been running fair and transparent negotiations with its clients ≫ Most of our cost ind
Slide 11: 2023 inflationary impacts offset by pricing adjustments
2023 inflationary impacts offset by pricing adjustments The c. +9% pricing effect in 2023 was in line with Elis’ cost inflation for the year % of the Cost item ≫ As expected, the price effect eased sequentially throughout cost base the year, and the pricing comparable base became more challenging Pe
Slide 12: Strong performance of the Mexican business acquired mid-2022
Strong performance of the Mexican business acquired mid-2022 Mexico: Great start since the company’s consolidation in our Revenue breakdown by end-market accounts (July 1st, 2022) ≫ Revenue of c. €120m in 2023 with adjusted EBITDA margin above 40% 11% ≫ c. +18% organic revenue growth in H2 2023 driv
Slide 13: Limited M&A activity in 2023; 2024 will be more active
Limited M&A activity in 2023; 2024 will be more active Limited M&A activity in 2023 Acquisition of Moderna, a c. 50m revenue Dutch player, closed in February 2024 ≫ Total impact of M&A on 2023 revenue: +1.8%, ≫ Complements Elis’ existing network in the Netherlands, essentially linked to the Mexican
Slide 14: Continued efforts on logistics costs drive EBITDA margin improvement
Continued efforts on logistics costs drive EBITDA margin improvement Logistics optimization Implementation of GLAD (Global Logistics Assistance for Deliveries) ≫ GLAD is an internal software that optimizes delivery routes ≫ It provides analytical data to measure potential savings ≫ Implementation st
Slide 15: Roll-out of best practices leads to steady efficiency improvement
The roll-out of best practices in all our countries leads to steady efficiency improvement Industrial efficiency Equipment modernization and Improvement of productivity KPIs with continuous roll-out of Elis’ best practices decrease in resource consumption ≫ A team of in-house specialists is going Pr
Slide 16: Significant improvement in the UK's performance since acquiring Berendsen
Significant improvement in the UK’s performance since acquiring Berendsen, applying Elis’ industrial and commercial methods Roll-out of Elis’ multi service approach ✓ From 0 multi-service plants in 2017 to 14 in 2023 Productivity improvement through better-trained staff ✓ +17.4% productivity improve
Slide 17: 2023 financials
OZ 2023 financials
Slide 18: Elis offers a highly diversified and well-balanced profile
Elis offers a highly diversified and well-balanced profile Breakdown of 2023 revenue By activity By market By geography Southern Europe Trade & Services Industry France Workwear Latin America 9% 36% 18% 26% 10% 31% UK & Ireland 12% 47% 30% 17% 26% 14% 24% Hygiene Scandinavia Central Flat linen & wel
Slide 19: FY 2023 organic revenue growth and adjusted EBITDA margin by geography
FY 2023 organic revenue growth and adjusted EBITDA margin by geography Full-year 2023 organic revenue evolution +15.1% +14.0% +13.6% +11.8% +10.7% +10.4% +8.5% Adjusted EBITDA margin evolution +190bps +90bps +30bps +70bps +90bps +360bps +130bps 40.3% 30.5% 36.5% 30.7% 34.4% 30.8% 34.2% France Centra
Slide 20: Significant margin improvement in all geographies
Significant margin improvement in all geographies, which are now all above 30% 2023 vs 2022 adjusted 2023 organic Geography EBITDA margin Comments revenue growth evolution Good pricing dynamic driven by the adjustments implemented since 2022 to offset inflation France +10.7% +190bps Contract wins in
Slide 21: Elis delivered strong improvement of all its financial KPIs
Elis delivered strong improvement of all its financial KPIs (In €m) 2023 20221 % change Revenue 4,309.4 3,820.9 +12.8% D&A to sales reached a low point at 18.4%: Adjusted EBITDA 1,474.8 1,259.6 +17.1% 2023 was the last year to benefit from lower As a % of revenue 34.2% 33.0% +130bps D&A compared to
Slide 22: 2023 ROCE at 13.9%, up +230bps yoy
2023 ROCE at 13.9%, up +230bps yoy and largely above pre-crisis level Pre-tax ROCE 2018-2023 13.9% 11.6% 9.5% 9.0% Covid years 8.4% 6.0% 2018 2019 2020 2021 2022 2023 The capital employed calculation should exclude intangible assets recognized in the Group’s last LBO (€1,537m in 2023, net of deferre
Slide 23: Fully diluted 2023 headline net income per share up +18.4%
Fully diluted 2023 headline net income per share up +18.4% yoy (In €m) 2023 20221 % change Net income 262.4 202.6 +29.5% Amortization of intangible assets recognized in a business combination2 65.0 63.4 Goodwill impairment - 58.7 IFRS 2 expense2 28.9 21.5 Accretion expense resulting from the Mexican
Slide 24: Fully-diluted headline EPS c. 50% above 2019 level
2023 fully-diluted headline net income per share is c. 50% above 2019 level Fully-diluted headline net income per share evolution between 2019 and 2023 1.70 1.44 1.12 Covid years 0.95 0.62 2019 2020 2021 2022 2023 24
Slide 25: Record free cash flow in 2023, up +35% vs 2022
Record free cash flow in 2023, up +35% vs 2022 (In €m) 2023 2022 Adjusted EBITDA 1,474.8 1,259.6 Non-recurring items and provision variance (13.7) (9.7) Acquisition and cession fees (1.5) (4.4) Other (1.6) (1.7) Capex to sales at 19.0% (vs 18.1% in 2022) driven by implementation of new Cash flows be
Slide 26: A well-diversified debt profile along with well-spread maturities
A well-diversified debt profile along with well-spread maturities Well-diversified financing Debt highlights Euro bonds ≫ €183m USPP ($200m) signed in July 2023, maturing in 2035, at 5.21% coupon USPP Convertible bonds ≫ Implementation of a non-derecognizing (i.e. no impact on working capital) secur
Slide 27: Continued rapid deleveraging: Net financial leverage at 2.0x
Continued rapid deleveraging: Net financial leverage at 2.0x at December 31, 2023 Net debt and financial leverage ratio evolution between 2019 and 2023 3500 3.4 3,5 3400 3.0 3.0 3 3300 2.5 3200 2,5 2.0 3100 2 3000 1,5 2900 2800 1 2700 0,5 2600 2500 0 Dec 2019 Dec 2020 Dec 2021 Dec 2022 Dec 2023 ≫ Ye
Slide 28: Key takeaways
Key takeaways Very strong financial Significant 2023 Further increase in A €0.43 cash dividend performance in 2023: profitability ROCE, highlighting per share will be Record level of all improvement: all Elis’ selective capital proposed at the next financial indicators geographies above deployment A
Slide 29: Step-up in CSR
(0) Step-up in CSR
Slide 30: Our new mission statement: Circular services at work
Our new mission statement: Circular services at work ≫ Help clients stay focused on their core business ≫ Reinforce our business model of rental, To deliver circular maintenance and reuse services at work for hygiene, well- ≫ Allow our clients to reduce their environmental being and protection footp
Slide 31: An ambitious but pragmatic plan to reach our targets
An ambitious but pragmatic plan to reach our targets Scope 1 & 2 reduction Scope 3 reduction Further optimize our energy Improve and optimize our 1 use in our industrial laundries 1 operating practices, especially on linen management Reduce the environmental impact of our products by working on 2 De
Slide 32: Elis is on track to meet its ambitious 2025 targets
Elis is on track to meet its ambitious 2025 targets 2023 2025 2023 2025 Thermal energy intensity1 -28% -35% Textile recycling 77% 3 80% Circularity and Water intensity1 -46% -50% Exemplarity to reduce Range of responsible products 58% 100% our impact on the planet Alternative logistics vehicles 355
Slide 33: 2023 CSR highlights
2023 CSR highlights Transition to alternative vehicles and Other highlights improvement in efficiency of deliveries ≫ Nearly tripled the number of alternative vehicles (commercial & ≫ In 2023, 84% of Elis’ employees stated that CSR is a key value logistics) between 2020 and 2023: from 258 to 1,231 o
Slide 34: Improvement in many CSR ratings
Improvement in many CSR ratings, rewarding Elis’ initiatives 75/100 score maintained. Elis ranked A- by Gold level, positioning the CDP for its 3rd Elis among the top 5% of year of reporting 100,000 assessed Elis within the companies Leadership category Ethifinance ESG rating ESG rating by MSCI (ex
Slide 35: Group strategy & 2024 outlook
Group strategy & 2024 outlook
Slide 36: Elis' strategy relies on 4 pillars
Elis’ strategy relies on 4 pillars Development of sustainable services and promotion of the circular economy Industrial and Network 2 commercial expansion excellence 4 Consolidation of current positions 36
Slide 37: Circularity is at the heart of Elis' business model
Circularity is at the heart of Elis’ business model ✓ Design ever more sustainable products and circular services thanks to the continuous reduction of their environmental impact ✓ Support our clients in the achievement of their ESG objectives by offering our services based on the circular economy 1
Slide 38: Elis' commercial and industrial know-how is second to none
Elis’ commercial and industrial know-how is second to none ✓ Develop and maintain over time a privileged commercial relationship with our clients, offering them a high-quality and reliable local service of our businesses through an analytical approach of industrial and logistics processes ✓ Spread a
Slide 39: Elis' strong market position in most of its countries
Elis’ strong market position in most its countries generates operational efficiency and competitive edge 1 Elis’ market position by country 1 2 1 1 1 2 Development of sustainable services 1 and promotion 1 1 of the circular 2 2 economy 3 3 3 Industrial and Network expansion commercial 1 1 excellence
Slide 40: From a French family business to a diversified global leader
From a French family business to a diversified global leader 1883: Creation in France 1971-2013: Development in Europe 2014: Entry in Brazil 2015: Entry in Chile 2016: Entry in Colombia 2017: Acquisition of Berendsen: 14 new countries 2022: Entry in Mexico Development of sustainable services and pro
Slide 41: Proven business resilience over the years
Proven business resilience over the years Global Financial Crisis Covid-19 War in recession Ukraine 4 500 34.2% 40% 34.5% 33.6% 33.8% 33.0% 4 000 32.7% 32.2% 32.2% 31.7% 31.1% 31.7% 31.9% 32.1% 32.5% 32.3% 31.8% 32.7% 31.5% 30.9% 30.6% 31.5% 35% 30.5% 31.1% 3 500 30% 3 000 25% 2 500 20% 2 000 15% 1
Slide 42: In 2024, Elis should deliver another strong financial performance
In 2024, Elis should deliver another strong financial performance Organic revenue growth Adjusted EBITDA margin Adjusted EBIT margin expected c. +5% expected close to 35% expected stable yoy at c. 16% ✓ With prices increasing below the ✓ Top line dynamism, further ✓ D&A returning to a normalized 202
Slide 43: Q&A
(OS Qa
Slide 44: Appendix
Appendix 2 2 z
Slide 45: Appendix: Restatement of 2022 figures
Appendix: Restatement of 2022 figures IFRS 3 “Business combinations” IFRS 3 requires previously published comparative periods to be retrospectively restated for business combinations (recognition of the final fair value of the assets acquired and the liabilities and contingent liabilities assumed wh
Slide 46: Appendix: Calculation of capital employed
Appendix: Calculation of capital employed (in €m) As of January 1st, 2023 As of January 1st, 2022 TOTAL ASSETS 8,634.3 8,043.1 Employee benefit asset (18.7) (51.8) Cash and cash equivalents (286.1) (160.1) Intangible assets recognized in the Group’s last LBO (net of deferred tax) (1,537.0) (1,537.7)
Slide 47: Appendix: Financial definitions
Appendix: Financial definitions ▪ Organic growth in the Group’s revenue is calculated excluding (i) the impacts of changes in the scope of consolidation of “major acquisitions” and “major disposals” (as defined in the Document de Base) in each of the periods under comparison, as well as (ii) the imp
Slide 48: Investor relations contacts
Nicolas Buron Charline Lefaucheux ELIS SA Director of Investor Relations, Financing & Treasury Investor Relations 5, boulevard Louis Loucheur Tel: +33 1 75 49 98 30 Tel: +33 1 75 49 98 15 92210 Saint-Cloud Mob: +33 6 83 77 66 74 Mob: +33 7 65 18 45 65 France Email: nicolas.buron@elis.com Email: char