Slide 1: 2021 full-year results – March 9, 2022
2021 full-year results – March 9, 2022 We empower your day
Slide 2: Disclaimer
Disclaimer This document may contain information related to the Group’s outlook. Such outlook is based on data, assumptions and estimates that the Group regarded as reasonable at the date of this press release. Those data and assumptions may change or be adjusted as a result of uncertainties relatin
Slide 3: 2021 business highlights - Xavier Martiré (CEO)
2021 business highlights - Xavier Martiré (CEO) Financials A responsible business Elis enters Mexico 2022 outlook Q&A 3
Slide 4: Solid operational and financial achievements in 2021
Solid operational and financial achievements in 2021 Activity rebound, strong Activity recovery driven Topline acceleration and strong profitability and cash by increasing need for Hygiene earnings improvement expected generation drive acceleration and by a marked pick-up in 2022, along with further
Slide 5: Healthcare: Good momentum across the board
Healthcare: Good momentum across the board 2021 Healthcare monthly growth excluding M&A +23% Improvement in activity +12% +10% +8% +6% +6% +6% +5% Non-Covid related treatments in hospitals are normalizing in most +4% +2% of our countries Advances with nursing homes: development of outsourcing and -1
Slide 6: Industry and Trade & Services: Elis has successfully addressed customer needs for more hygiene
Industry and Trade & Services: Elis has successfully addressed customer needs for more hygiene 2021 Industry monthly growth excluding M&A +17% +13% The sanitary crisis has created some structural client needs +11% +11% +8% Need for hygiene: Higher demand for soaps, hand wipes, +4% +3% +6% +6% +4% hy
Slide 7: Hospitality: Strong pick-up in volume since May
Hospitality: Strong pick-up in volume since May 2021 Hospitality monthly growth excluding M&A +199% +220% +148% +96% +112% Marked activity pick-up since May 2021 +67% +40% +42% +32% Rebound first started in domestic tourism France, the UK & Ireland and Southern Europe all recorded strong activity pi
Slide 8: Pick-up in Hospitality: Focus on France, Spain and the UK
Pick-up in Hospitality: Focus on France, Spain and the UK 200 200 200 175 175 175 150 150 150 125 125 125 100 100 100 75 75 75 50 50 50 25 25 25 0 0 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Flat linen volumes in France – Flat linen volumes in Spain – Flat linen volumes in the UK – Basis 100 January 201
Slide 9: Elis’ quality of service and leadership position have driven client retention
Elis’ quality of service and leadership position have driven client retention Churn rate reduction Strong reliability Listening to clients Seamless quality of service Delivery regardless of volumes Elis acted as a real business Quality improvement programs and potential workforce shortfall, partner
Slide 10: Strong operating leverage in 2021: EBITDA margin up +70bps
Strong operating leverage in 2021: EBITDA margin up +70bps 2020 cost adjustment efforts have Strong operational performance Slight impact from inflation in H2 2021 generated some permanent savings thanks to Elis’ know-how ✓ Inflation level varies from a country ✓ Permanent shutdown of plants ✓ Good
Slide 11: 5 acquisitions closed in 2021, of which 4 in Hygiene & Well-being
5 acquisitions closed in 2021, of which 4 in Hygiene & Well-being Washroom September 2021 2021 revenue: c. €3m Textile December 2021 Pest Control Pest Control 2021 revenue: c. €8m July 2021 November 2021 2021 revenue: c. €3m 2021 revenue: c. €3m Cleanroom March 2021 2021 revenue: c. €13m 2021 M&A im
Slide 12: Elis has no presence in Ukraine and only limited presence in Russia
Elis has no presence in Ukraine and only limited presence in Russia Russia: 9 plants Sufficient funding revenue of c. €20m in the country and inventory to allow business continuity until the end of 2022 12
Slide 13: Successful track record in acquiring and integrating businesses
Successful track record in acquiring and integrating businesses Nearly 75 acquisitions since 2010 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 Nb. of acquisitions 7 7 4 8 7 9 6 5 6 5 5 5 M&A spend (€m), incl. 28 13 13 22 97 117 221 1,392 62 83 88 87 earn-outs on previous transactions
Slide 14: 2021 business highlights - Financials - Louis Guyot (CFO)
2021 business highlights Financials - Louis Guyot (CFO) A responsible business Elis enters Mexico 2022 outlook Q&A 14
Slide 15: Elis offers a highly diversified and well-balanced profile
Elis offers a highly diversified and well -balanced profile 2021 revenue breakdown By activity By end-market By geography Latin America Workwear Trade & Industry France Services Southern 8% 41% Europe 21% 8% 30% 32% UK & Ireland 12% 40% 19% 16% 31% 18% Scandinavia 24% Hygiene Central Flat Linen & We
Slide 16: Strong organic growth rebound from Q2 onwards
Strong organic growth rebound from Q2 onwards: Activity improvement across the board 2021 monthly organic revenue evolution +23.4% +19.7% +23.2% +15.8% +18.8% +0.4% +8.6% +10.0% +9.1% +10.0% -19.7% -16.4% Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Q1: -12.8% Q2: +19.4% Q3: +9.2% Q4: +17.1% 16
Slide 17: Strong organic growth rebound driven by recovery in Hospitality and commercial dynamism
Strong organic growth rebound driven by recovery in Hospitality and strong commercial dynamism 2021 organic revenue evolution by geography +19.0% +14.1% +12.8% +9.9% +7.4% +2.5% +3.1% France Central Scandinavia & UK Southern Latin Group Europe Eastern Europe & Ireland Europe America 17
Slide 18: EBITDA margin up +70bps in 2021
EBITDA margin up +70bps in 2021 Post-pandemic margin significantly above 2019 level 2021 EBITDA margin Scandinavia Central & Eastern UK Southern Latin France Europe Europe & Ireland Europe America Group vs 2020 +110bps -10bps -40bps +170bps +560bps -60bps +70bps vs 2019 +110bps +100bps -20bps +220bp
Slide 19: EBIT margin improvement in 2021 and 2022 driven by D&A stability
EBIT margin improvement in 2021 and 2022 driven by D&A stability In €m 700 600 500 400 300 200 100 0 2019 2020 2021 2022 F Industrial capex Linen capex D&A ✓ 2019: Last year of the Berendsen capex program ✓ 2020: Capex decrease in the context of the pandemic ✓ 2021: Capex as a percentage of revenue
Slide 20: Strong improvement of all profitability metrics; Headline net income up +60.4%
Strong improvement of all profitability metrics; Headline net income up +60.4% (In €m) 2021 20201 % change Revenue 3,048.3 2,806.3 +8.6% EBITDA 1,052.1 947.6 +11.0% As a % of revenue 34.5% 33.8% +70bps The decrease in 2020 linen capex led to a stabilization D&A (663.7) (656.1) of the D&A level in 20
Slide 21: 2021 Headline net income calculation
2021 Headline net income calculation (In €m) 2021 20201 Net income 114.6 2.7 Amortization of intangible assets recognized in a business combination2 65.3 74.3 IFRS 2 expense2 25.9 13.4 Accelerated amortization of loans issuing costs2 2.1 0.1 Breakup costs (refinancing) 2 3.3 - Non-current operating
Slide 22: Record free cash flow after lease payments in 2021, at €228m
Record free cash flow after lease payments in 2021, at €228m Net debt reduced by c. €225m since the beginning of the crisis (In €m) 2021 2020 EBITDA 1,052.1 947.6 The high amount in 2020 was mainly Non-recurring items and changes in provisions (14.1) (55.2) made up of restructuring costs Acquisition
Slide 23: Liquidity and rating profiles significantly upgraded in 2021
Liquidity and rating profiles significantly upgraded in 2021 A well-diversified financing 2021 debt and rating highlights As of December 31, 2021 Strong cash generation : CP outstanding amount reduced by €140m New €900m Sustainability-linked Revolving Credit Facility due November 2026, Bond (issued
Slide 24: A very strong financial profile that proved its resilience during the crisis
A very strong financial profile that proved its resilience during the crisis Main achievements over 2019-2021 2019 High Yield bond and Term loans refinanced by new EMTN bond and USPP 2020 Waivers on leverage covenant obtained as part of the Covid-19 crisis impact management 2021 Partial refinancing
Slide 25: 2021 key financial takeaways
2021 key financial takeaways 11 Sharp recovery in 2021 activity in all our verticals and geographies EBITDA margin and EBIT margin up +70bps and +240bps respectively, 22 on the back of a lighter cost base, operational improvements and D&A normalization Improvement of free cash flow generation at €22
Slide 26: 2021 business highlights - A responsible business
2021 business highlights Financials A responsible business - Xavier Martiré (CEO) Elis enters Mexico 2022 outlook Q&A 26
Slide 27: Elis’ growth model is a virtuous circle
Elis’ growth model is a virtuous circle: Our business is based on the circular economy 1 6 Product Changing 7 design product A B 5 Cleaning 2 Product in 9 Secondary Other use by our energy life Product customers production Second D 8 C life 4 Taken out 3 of rotation Maintenance New life Reuse contro
Slide 28: A sustainable solution, creating many commercial opportunities
A sustainable solution, creating many commercial opportunities Elis’ services are sustainable alternatives to: An increasing number of tenders won by Elis with CSR criteria Acquisition or regular use of products: by optimizing product usage through product sharing and industrial management Single-us
Slide 29: Elis helps its client to reduce their CO2 emissions
Elis helps its client to reduce their CO 2 emissions Circular economy is a sustainable solution to address today’s environmental challenges Using a hand towel with a cotton spool reduces CO2 emissions by up to 29% compared to a disposable papier towel solution The use of reusable hospitals scrub sui
Slide 30: Some concrete examples of our longstanding commitment (1/2)
Some concrete examples of our longstanding commitment (1/2) Climate: a longstanding Continue our circular economy Offering increasingly responsible commitment journey products ✓ Better value our end-of-life products: ✓ Proposal to set up Science Based ✓ In line with our objective to have 73% of our
Slide 31: Some concrete examples of our longstanding commitment (2/2)
Some concrete examples of our longstanding commitment (2/2) Deployment of Elis’ golden rules Acceleration of the transition CSR is part of our day-to-day to alternative vehicles business ✓ Elis’ 10 safety golden rules aim at More than doubled the number of ✓ Elis has put in place a dedicated CSR pre
Slide 32: Our 2021 performance
Our 2021 performance 2021 2025 2021 2025 Climate Change intensity -19% -20% Responsible vehicles 257 Circularity and Exemplarity to reduce our impact Thermal energy intensity1 -22% -35% Textile recycling 73% 80% on the planet Range of responsible Water intensity1 -40% -50% products 46% 100% Paris Fu
Slide 33: 2021 business highlights - Elis enters Mexico
2021 business highlights Financials A responsible business Elis enters Mexico - Xavier Martiré (CEO) 2022 outlook Q&A 33
Slide 34: A history of revenue and margin expansion in Latin America
A history of revenue and margin expansion in Latin America 2021 revenue mix by end-market Latam organic revenue growth 2015-2021 +15.0% 2014 4% +14.1% Brazil 26% 10 acquisitions 70% Average organic growth 2015-2021: +9.5% +8.4% +7.0% +7.1% +5.4% +3.2% 2015 10% Chile 16% Elis present since 2015 2015
Slide 35: Elis’s strong track-record in Brazil demonstrates its capacity to integrate assets in Latin America
Elis’s strong track-record in Brazil demonstrates its capacity to integrate assets in Latin America Acquisition No of Clinilaves acquisition No and Asph Acquisition No acquisition Acquisition acquisition of Martins & of Lavebras Elis enters the Lococo, MPW and Bardusch Brazilian market Acquisition a
Slide 36: Acquisition of a century-old business that is a leader on the Mexican market
Acquisition of a century-old business that is a leader on the Mexican market A leader in its industry Revenue breakdown by end-market Only player with national coverage Pre-covid organic revenue growth above +10% 11% Contained impact from the Covid crisis on the business with 2020 revenue down c. -7
Slide 37: National coverage and high-quality industrial assets
National coverage and high-quality industrial assets 11 washing plants 320 tons per day capacity State-of-the-art facilities (European standards, Kannegieser equipment…) More than 2,600 employees 11 washing plants 12 distribution centers 1garment factory 37
Slide 38: The Mexican economy is solid and stable
The Mexican economy is solid and stable Mexico GDP breakdown The Mexican economy has performed solidly throughout the COVID-19 crisis c. 130 million inhabitants 4% 8% 15th economy in the world c. 4% annual GDP growth before the pandemic ; 2022/2023 forecasts of 2.7% and 2.4% respectively 32% 56% Rel
Slide 39: Elis expects to generate c. 10% organic revenue growth in Mexico in the coming years
Elis expects to generate c. 10% organic revenue growth in Mexico in the coming years A market with strong outsourcing potential Workwear for industry is still Strong public Very dynamic hospitality largely internalized healthcare market market driven by tourism Strong footprint Ageing population dri
Slide 40: Key financial highlights of the Mexican transaction
Key financial highlights of the Mexican transaction Attractive multiples (5.6x 2021 EBITDA and 12.0x 2021 EBIT) c. 4% accretive impact on headline net income per share on a 12-month proforma basis The deal includes potential earn-outs over 2023-2025 at lower multiple Elis enters a new market with st
Slide 41: 2021 business highlights - 2022 outlook
2021 business highlights Financials A responsible business Elis enters Mexico 2022 outlook - Xavier Martiré (CEO) Q&A 41
Slide 42: Proven business resilience over the years
Proven business resilience over the years Internet bubble Subprime crisis and Spanish crisis Covid crisis 4,000 crisis 40% 33.6% 33.8% 34.5% 3,500 32.7% 32.2% 31.7% 31.1% 31.7% 31.9% 32.1% 32.5% 32.3% 31.8% 32.7% 32.2% 31.5% 30.9% 30.6% 35% 31.5% 30.5% 31.1% 3,000 30% 2,500 25% 2,000 20% 1,500 15% 1
Slide 43: Elis’s organic growth profile reinforced in all non-Hospitality markets
Elis’s organic growth profile reinforced in all non -Hospitality markets Structural trends are changing Elis’ organic growth profile Outsourcing trend Need for more driven by the need Structural growth Steady increase in the hygiene creates for employers to ensure of the nursing home share of Elis’
Slide 44: Hospitality: up to c. €350m recovery potential in 2022
Hospitality: up to c. €350m recovery potential in 2022 Quarterly 2021 Hospitality activity compared to 2019 Total 2021 revenue shortfall vs 2019: c. €350m 80% 85% 40% 30% Q1 Q2 Q3 Q4 2021 activity as a % of 2019 level Activity reduction compared to 2019 44
Slide 45: FY 2022 organic revenue growth
FY 2022 organic revenue growth Our working assumption is that activity in Hospitality in H1 2022 will be -20% below the 2019 level and that it will continue to recover in H2 2022 We currently expect full-year 2022 organic growth to be between This working assumption also factors in: +13% and +15% No
Slide 46: Foreseeable cost increases are quickly passed on to customers
Foreseeable cost increases are quickly passed on to customers Example of personnel costs (c. 40% of revenue): Main drivers Cost increase timing Price increase timing ✓ Increase in minimum legal wage ✓ Minimum legal wage increase for year N ✓ For small clients: the increase is reflected in ✓ Labor sh
Slide 47: Erratic increases of cost components are more difficult to immediately pass on
Erratic increases of cost components are more difficult to immediately pass on Energy costs (gas, electricity & fuel): c. 5% of revenue Main driver Cost increase timing Price increase timing ✓ North gas exchange point (GEP) ✓ Immediate when we pay spot, delayed ✓ We use a public index with both smal
Slide 48: Gas prices: what happened in 2021 and where we stand today
Gas prices: what happened in 2021 and where we stand today Monthly average GEP (gas exchange point) price evolution since 2010 (€ per MWh) 200 180 Elis’ assumption for the period March-December 2022 160 140 120 100 Elis’ 2022 average assumption: €100/MWh 80 60 40 20 0 Jan Fev Mar Apr May Jun Jul Aug
Slide 49: FY 2022 profitability and free cash flow generation
FY 2022 profitability and free cash flow generation 2022 EBITDA margin should be at c. 33.5%, assuming that gas price will stabilize for the remainder of the year at the YTD average price as of March 8, 2022, i.e. €100/MWh Should gas prices remain significantly above €100/MWh in H1 2022, we would ac
Slide 50: Medium-term outlook
Medium-term outlook Organic growth EBITDA Elis’ post-crisis normative organic revenue The decrease in EBITDA margin expected in growth (i.e., excluding post-Covid crisis 2022 should be reversed in 2023, either Hospitality catch-up effect) should be above mechanically if gas price goes down in 2022,
Slide 51: Key takeaways
Key takeaways Strong 2021 financial and operational performance driven by the recovery in 11 activity in all our verticals and geographies 22 Reinforced organic growth and deleveraging profile in a post-Covid world Sharp acceleration in topline growth expected in 2022, 33 along with strong earnings
Slide 52: Q&A - Xavier Martiré (CEO) & Louis Guyot (CFO)
2021 business highlights Financials A responsible business Elis enters Mexico 2022 outlook Q&A - Xavier Martiré (CEO) & Louis Guyot (CFO) 52
Slide 53: Appendix: Restatement of 2020 figures
Appendix: Restatement of 2020 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 54: 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 impac
Slide 55: ELIS SA
Nicolas Buron ELIS SA Investor Relations Director 5, boulevard Louis Loucheur Tel: +33 1 75 49 98 30 92210 Saint-Cloud Mob: +33 6 83 77 66 74 France Email: nicolas.buron@elis.com https://fr.elis.com/en We empower your day