Johnson Service Group Plc · LSE:JSG

Johnson Service — H1 2017 Earnings Presentation

15 slides from Johnson Service's earnings presentation, June 2017

  1. Slide 1: Interim Results: Six months ended 30 June 2017

    (AjJQHNSON INTERIM RESULTS t ~y Six months ended 30 June 2017 = Chris Sander Chief Executive Officer Yvonne Monaghan Chief Financial Officer

  2. Slide 2: Strong financial performance and strategic plan delivery

    2  Strong financial performance1 reflecting organic growth of 4.8% and benefit of recent acquisitions - Revenue increased to £138.0m (+19.3%) Revenue - Adjusted PBT2 increased to £16.8m (+23.5% ) up 19.3% - Adjusted fully diluted EPS2 increased to 3.7p (+15.6%)  Strong delivery of Strategic Plan A

  3. Slide 3: H1 Revenue, Operating Profit, EPS and Dividend per Share

    3 Continuing operations H1 Revenue (£m) H1 Adjusted Operating Profit (£m) 150 138.0 20 18.6 115.7 15.5 15 100 85.7 10.8 74.4 9.0 64.0 10 5.9 50 5 0 0 2013 2014 2015 2016 2017 2013 2014 2015 2016 2017 H1 Adjusted Fully Diluted EPS (p) H1 Dividend per Share (p) 4.0 3.7 1.0 0.9 3.2 0.8 0.8 3.0 2.5 0.7

  4. Slide 4: Continuing operations income statement summary

    4 Continuing operations (£m) 2017 H1 2016 H1 Increase Restated Revenue 138.0 115.7 19.3% Adjusted operating profit1 18.6 15.5 20.0% Adjusted operating margin1 13.5% 13.4% n/a Exceptional items - (0.7) n/a Adjusted PBT1 16.8 13.6 23.5% Adjusted EPS1 3.7p 3.2p 15.6% 2 Number of shares used in EPS calc

  5. Slide 5: Cash flow and net debt

    5 Continuing Operations (£m) 2017 H1 2016 H1 Restated 2016 FY Adjusted operating profit 18.6 15.5 37.7 Depreciation and software amortisation (excl. exceptionals) 23.4 19.3 43.3 Working capital (excl. exceptionals) (0.9) 3.3 3.0 Capital expenditure – fixed assets (7.0) (4.8) (14.6) – rental stocks (

  6. Slide 6: Strategic plan progress

    6  Disposal of Drycleaning activities  Development of core markets within Textile Rental  Delivery of operational efficiencies  Continuity of margin  Further investment in divisional operational teams  Development of an in-house badge production facility for Apparelmaster  Development of a gr

  7. Slide 7: Acquisition of PLS

    7  Modern and well equipped facility, located south of Edinburgh  Predominantly serves the high volume hotel linen market throughout much of Scotland and North East England  Processes some 350,000 pieces per week  130 employees  Complements existing Afonwen and Bourne businesses  £4.9m revenue

  8. Slide 8: Six Leading Brands in Textile Rental

    8 Workwear HORECA (hotels, restaurants & catering)  17 laundries  15 laundries  5 depots  2 depots  2,200 employees  3,000 employees  370 commercial vehicles  370 commercial vehicles  1.3 million wearers  8.5 million items processed a week (average) Premium linen Restaurant & High volume H

  9. Slide 9: Textile Rental trading performance

    9 £m 2017 H1 2016 H1 Increase Revenue 138.0 115.7 19.3% Adjusted operating profit1 20.7 17.3 19.7% Margin 15.0% 15.0%  Overall revenue growth of 19.3% with all brands trading ahead of 2016  Underlying revenue growth of 4.8%  Trading benefitted from synergies across HORECA operations  One-off ben

  10. Slide 10: Bank Facility, Hedging and Interest

    10 Bank Facility Hedging  £120.0m Revolving Credit Facility (“RCF”) expiring April 2020  Hedging arrangements in place as follows:  RCF at LIBOR + applicable margin - £10m to Jun 18 at 0.49%  RCF average margin during H1 2017 was 1.75% and will be the same for - £15m to Jan 19 at 1.47% at least

  11. Slide 11: Pensions and Tax

    11 Pensions Tax  Net deficit of £7.0m (Dec 2016: £13.8m)  Effective tax rate on adjusted profit before taxation of 19.4% (2016: 20.3%)  Reduction due to combination of asset returns being greater than expected and experience gains on liabilities  Deficit recovery payments of £0.9m (2016 H1: £0.9

  12. Slide 12: Outlook and growth opportunities

    12 Shareholder value Organic growth opportunities Investment programme Acquisitions  Boosted by:  To create market-leading modern estate,  Further synergy gains, including scale and support: efficiencies, anticipated from recent - increased geographic coverage acquisitions - further operational e

  13. Slide 13: Thank You

    (F)JOHNSON THANK YOU

  14. Slide 14: Textile Rental and Group results

    14 H1 2017 H1 2016 (Restated) Adjusted Adjusted Revenue Operating Profit1 Revenue Operating Profit1 £m £m £m £m - Trading 138.0 20.0 115.7 16.7 - Allocated Income - 0.7 - 0.6 Textile Rental 138.0 20.7 115.7 17.3 Group Costs - (2.1) - (1.8) TOTAL 138.0 18.6 115.7 15.5 Note 1: Before amortisation of i

  15. Slide 15: Disposal of Drycleaning activities

    15  Transaction completed on 4 January 2017 for gross consideration of £8.25m on a debt free, cash free basis  Drycleaning activities reported as Discontinued Operations and net assets classified as “held for sale” as at 31 December 2016  £2.0m goodwill impairment recognised within Discontinued O

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