Johnson Service Group Plc · LSE:JSG
Johnson Service — FY2024 Earnings Presentation
30 slides from Johnson Service's earnings presentation, March 2025
Slide 1: Johnson Service Group PLC Final Results
JOHNSON SERVICE GROUP PLC Final Results 31 December 2024 JOHNSON Service Group PLC “Strong FY24 performance and well placed for continued progress and margin improvement in FY25.” Peter Egan - Chief Executive Officer Yvonne Monaghan - Chief Financial Officer
Slide 2: Contents
end JOHNSON Service Group PLC CONTENTS 1) Operational Highlights 2) Financials 3) Investment 4) Sustainability 5) Operational Performance 6) Outlook 7) Investment Case Appendices
Slide 3: Operational Highlights
OPERATIONAL HIGHLIGHTS "Our scale, expertise and operational excellence mean that we are well placed to capitalise on opportunities...”
Slide 4: Organic revenue in HORECA increased 5.6%, with stable revenue in Workwear
Organic revenue in HORECA increased 5.6%, with stable revenue in Workwear HORECA volumes continued to improve with increased number of hotel rooms now being serviced New HORECA site in Crawley now processing; encouraging new sales activity to help build throughput Workwear retention levels were 93%
Slide 5: Financials
JOHNSON Service Group PLC FINANCIALS “We remain focused on delivering excellent service which is commensurate with our pricing levels as we move into 2025."
Slide 6: Financial Highlights
2024 Final Results Financial Highlights 2024 2023 Revenue (£m) 513.4 4653 Adjusted EBITDA (£m)'? 152.6 131.5 Adjusted EBITDA margin (%)'2 29.7 283 Adjusted operating profit (£m)? 62.3 50.5 Adjusted operating margin (%)? 12.1 10.9 Adjusted PBT (£m)? 54.8 445 Adjusted diluted EPS (p)?3 10.1 78 Number
Slide 7: Strong and sustainable growth since COVID-19
The Group has continued to deliver strong and sustainable growth in the aftermath of COVID-19 4.00 2.80 2.40
Slide 8: Energy and cost analysis
Energy • Energy costs (gas, electricity and fuel) have remained elevated, albeit to a lesser extent than recent years 2024 Cost Analysis • 2024 energy costs represented 8.8% of revenue (2023: 10.0%; 2019: 6.2%) • Impact of energy prices being proactively managed with various fixed pricing in place a
Slide 9: Cash Flow
2024 Final Results Cash Flow a eS Adjusted operating profit Depreciation,impairment and software amortisation Working capital fixed assets and software Capital expenditure | rental stocks (net) fixed asset proceeds Interest Tax Exceptional items (cash effect) Dividends Additional pension contributio
Slide 10: Other Financial Information
2024 Final Results Other Financial Information Interest « Interest cost of £7.5m including £2.3m relating to IFRS 16 lease liabilities (2023: £6.0m and £2.1m respectively) + Notional pension interest cost of Enil (2023: £0.5m) and expected to be a £0.2m credit in 2025 Bank Facility « £120m Revolving
Slide 11: Investment
JOHNSON Service Group PLC Investment “We are continuing with our programme of investing in our sites to expand capacity, increase water and energy efficiencies and improve employee welfare facilities.”
Slide 12: £16.0m investment now completed
2024 Final Results = £16.0m investment now completed = One of the most sustainable and energy efficient laundries of scale in the UK = Site now operational = Encouraging new sales activity = Accelerates growth and gives greater access to London and the South East '@°::8 JOHNSON Service Group PLC 12
Slide 13: Acquisition of Empire Linen Services
2024 Final Results Acquisition of Empire Linen Services ei JOHNSON " Transaction completed on 2 September 2024 w senvice Group BLE = £20.6m consideration on a debt free, cash free, basis = Provides linen services to luxury hotels in London and the South East = 26,000 sq ft leasehold processing facil
Slide 14: Capital Expenditure
2024 Final Results “eee” Capital Expenditure £44.6m cron Investment Investment in new site Ireland Investment in \ Wexford, Naas \ and Belfast q sites te Group-Wide New commercial vehicles JOHNSON Service Group PLC Cardiff Sortation System Increased site capacity Manchester New automated production
Slide 15: Sustainability
Sustainability “We have continued to build on the foundations of our sustainability strategy with communication and involvement of employees at all levels being a key focus.” Sie.d JOHNSON Service Group PLC
Slide 16: Our commitment to sustainability
• We continue to demonstrate our commitment to sustainability across every area of our business and have made excellent progress against our strategy • Carbon: 5% reduction in TCO2e / Tonnes processed intensity rate • Water: 8% reduction in M3 / Tonnes processed intensity rate • Waste: 93% of waste
Slide 17: Operational Performance
OPERATIONAL PERFORMANCE “We are delighted to report that our HORECA business delivered increased volumes during the year, whilst Workwear customer retention rates continued to increase." <2. s" JOHNSON Service Group PLC 17
Slide 18: Operational Performance: HORECA
2024 Final Results JOHNSON Service Group PLC Operational Performance es: JOHNSONS JOHNSONS JOHNSONS JOHNSONS Hotel Linen Hotel Restaurant & Catering Linen Luxury Linen ireland 2024 2023 Revenue (£m) 371.2 3227 Adjusted EBITDA (£m)'2 110.5 897 Adjusted EBITDA margin (%)'2 29.8 278 Adjusted operating
Slide 19: Operational Performance
2024 Final Results Operational Performance JOHNSON Service Group PLC ¢ Organic revenue increased by 5.6% ANN 4 « Revenue benefitted from strong customer retention, higher volumes and price increases « Following the acquisition of Empire, Johnsons Luxury Linen is under one management team « Integrati
Slide 20: Operational Performance: Workwear
2024 Final Results JOHNSON Service Group PLC Operational Performance * JOHNSONS Workwear Revenue (£m) Adjusted EBITDA (£m)'2 Adjusted EBITDA margin (%)'2 Adjusted operating profit (£m)2 Adjusted operating margin (%)2 Notes: 1. Adjusted operating profit plus depreciation charge for property, plant an
Slide 21: Operational Performance
2024 Final Results Operational Performance JOHNSON Service Group PLC « 25% of all new sales sold in the period came from new-to-rental Customer retention levels increased to 93% (2023: 91%) Existing customer satisfaction at 86.0% and new customers at 88.7% = Positive momentum into 2025; will take ti
Slide 22: Outlook
os e JOHNSON Service Group PLC OUTLOOK “..the Board remains confident about delivering another year of progress in 2025 and future growth opportunities available to the Group.” 22
Slide 23: Encouraging trading momentum and proactive management of costs
Encouraging trading momentum and proactive management of costs Adjusted operating margin will continue to improve Integration of recent acquisitions underway Expansion strategy being delivered through new Crawley site, London depot and targeted investment Focus on expanding the Group through targete
Slide 24: Investment Case
‘i e@ if JOHNSON Service Group PLC INVESTMENT CASE “The Group's objective is to employ a = disciplined approach to investment, ’ returns and capital efficiency to deliver sustainable compounding growth whilst also maintaining a strong balance sheet." 24
Slide 25: Disposals and acquisitions revenue mix
2012 Revenue 2024 Revenue 2012 Revenue 2024 Revenue 21% 22% 28% 53% 26% 78% 72% 100% Textile Services HORECA Drycleaning Workwear Facilities Management Disposals Acquisitions
Slide 26: An Essential Service Provider
An Essential Quality Service A Local Service Service Provider We provide our Our proximity to The services we customers enables us to customers with a provide to our quickly respond to their quality service which customers are essential needs they can rely upon to their business Sustainable Substitu
Slide 27: Medium-Term Outlook Components
Key Components of Our Medium-Term Outlook Supported By Exceptional service ▪ Value-added proposition and market leading service supports above underpinned by quality and Organic market growth reliability Revenue Growth ▪ Consistent track record of delivering organic growth Long-term relationships an
Slide 28: Appendices
“6°'@ on: 2 e Wo ~ Dey “6 ®, Prt) : se e e @: eo: “ Oo Service Group PLC Appendices 28
Slide 29: Segmental Analysis
2024 Final Results Appendix 1 . JOHNSON Segmental Analysis Service Group PLC HORECA Workwear 142.2 20.3 49.4 142.6 21.4 48.6 Textile Rental 513.4 69.7 159.9 4653 574 138.3 Group Costs = (7.4) (7.3) - (6.9) (6.8) Notes: 1. Operating Profit before amortisation of intangible assets (excluding software
Slide 30: www.jsg.com
JOHNSON Service Group PLC www.jsg.com