Slide 1: Investor Presentation Second Quarter 2019
Investor Presentation SECOND QUARTER 2019 1
Slide 2: Agenda
Agenda 1 Business Overview 2 Second Quarter 2019 Review 3 Fiscal 2019 Outlook 4 Appendix Forward-Looking Statements and Non-GAAP Financial Information: Our discussions during this conference call and in this presentation will include forward-looking statements. Actual results could differ materially
Slide 3: Business Overview
Business Overview ABM. Building Value
Slide 4: Who We Are
Who We Are PURPOSE To take care of the people, spaces and places that are important to you VISION To be the clear choice in the industries we serve through engaged people MISSION To make a difference, every person, every day
Slide 5: Building Value Through Industry Expertise
Building Value Through Industry Expertise Keeping your environment safe, clean, comfortable and energy efficient through individual or integrated solutions Aviation Business & Industry Education Healthcare Technology & Manufacturing 5
Slide 6: Industries We Serve
Healthcare Technical Solutions (4%) (7%) Industries We Serve Education (13%) Business & As of Fiscal 2018 Industry (45%) Technology & Manufacturing (15%) Aviation (16%) 6
Slide 7: Services We Perform
Services We Perform As of Fiscal 2018 7
Slide 8: Targeting the Outsourcing Continuum
Targeting the Outsourcing Continuum Aligning workplace strategy with operational best practices for improved cost efficiencies, productivity, communication and scalability SAVINGS Majority self-performed services maximizes Impact to operating costs through SOPs, labor energy and asset alignment with
Slide 9: Unparalleled Clientele
AVIATION CLIENTELE BUSINESS & INDUSTRY EDUCATION HEALTHCARE TECHNOLOGY & MANUFACTURING 9 UNPARALLELED
Slide 10: History of M&A
History of M&A $3B Group: Lighting Mechanical Electrical 2010 | GBM SUPPORT SERVICES GROUP Janitorial (UK) 2014 2020 Vision e ABM. Building Value e ABM. Government Services Sold Government business + $6B |! 2007 © onesource Janitorial | 2012 © airserv Aviation SHHA SERVICES Healthcare |! 2015 e ABM.
Slide 11: Janitorial
Janitorial PURPOSE To take care of the people, spaces and places that are important to you VISION To be the clear choice in the industries we serve through engaged people MISSION To make a difference, every person, every day In Summary... Facltios Engneering Electrical lighting
Slide 12: Second Quarter 2019 Review
Second Quarter 2019 Review 12
Slide 13: Second Quarter 2019 Review
Second Quarter 2019 Review $1,594.7 $1,580.8 Total Growth 0.9% Organic Growth 1.7% 2018 2019 ¹ organic growth defined as growth excluding acquisitions, divestitures and the impact of the adoption of ASC 606 and ASC 853. 13
Slide 14: Second Quarter 2019 Review
Second Quarter 2019 Review Q2 FY19 Income from Q2 FY19 Adj. Income from Continuing Operations Continuing Operations1 1 $31.2 $31.5 $29.9 $25.4 $0.45 $0.47 $0.47 $0.38 per share per share per share per share 2018 2019 2018 2019 ¹ Please refer to the appendix for a reconciliation of GAAP to non-GAAP m
Slide 15: Second Quarter 2019 Review
Second Quarter 2019 Review Q2 FY19 Q2 FY19 1 Net Income Adj. EBITDA $83.0 $84.7 $29.7 $26.6 5.3% 5.3% $0.40 $0.45 margin margin per share per share 2018 2019 2018 2019 ¹ Please refer to the appendix for a reconciliation of GAAP to non-GAAP measures. 15
Slide 16: Second Quarter 2019 Segment Results
Second Quarter 2019 Segment Results Business & • Revenues of $753.4m, decrease of 0.2% y-o-y Industry • Operating profit of $47.7m, operating margin of 6.3% • Revenues of $250.0m, increase of 0.3% y-o-y* Aviation • Operating profit of $4.8m, operating margin of 1.9% Technology & • Revenues of $224.3
Slide 17: Fiscal 2019 Guidance Outlook
Fiscal 2019 Guidance Outlook 17
Slide 18: Fiscal 2019 Outlook
Fiscal 2019 Outlook* Metric Amount Income from continuing operations per diluted share¹ $1.70 - $1.80 Adjusted Income from continuing operations per diluted share¹ ² $1.95 - $2.05 Depreciation $50m - $55m Amortization $57m - $62m Interest Expense $51m - $53m Capital Expenditures $50m - $60m Adjusted
Slide 19: Fiscal 2019 Outlook
Fiscal 2019 Outlook FY19 Operating Segment Trend Margin % Business & Industry Low-5% Higher Aviation Approx. 3% Lower Education Low-5% As Expected 1 Healthcare Low-5% Lower Technology & Manufacturing High-7% As Expected Technical Solutions High-9% Higher 1 Realignment to occur in third quarter of fi
Slide 20: Appendix
Appendix ABM. Building Value
Slide 21: Forward Looking Statements
Forward Looking Statements This presentation contains both historical and forward-looking statements about ABM Industries Incorporated (“ABM”) and its subsidiaries (collectively referred to as “ABM,” “we,” “us,” “our,” or the “Company”). We make forward-looking statements related to future expectati
Slide 22: Use of Non-GAAP Financial Information
Use of Non-GAAP Financial Information To supplement ABM’s consolidated financial information, the Company has presented income from continuing operations and income from continuing operations per diluted share as adjusted for items impacting comparability, for the second quarter of fiscal years 2019
Slide 23: Impact of Adoption of Topic 606 and Topic 853
Impact of Adoption of Topic 606 and Topic 853 23
Slide 24: FY19 Inter-segment Revenues – FY18 Historical
FY19 Inter-segment Revenues – FY18 Historical As reported As adjusted Three Months Ended Three Months Ended Three Months Ended Three Months Ended Twelve Months Ended Three Months Ended Three Months Ended Three Months Ended Three Months Ended Twelve Months Ended January 31, 2018 April 30, 2018 July 3
Slide 25: Unaudited Reconciliation of Non-GAAP Financial Measures
Unaudited Reconciliation of Non-GAAP Financial Measures (a) The Company adjusts income from continuing operations to exclude the impact of certain items that are unusual, non-recurring, or otherwise do not reflect management's views of the underlying operational results and trends of the Company. (b
Slide 26: Unaudited Reconciliation of Non-GAAP Financial Measures
Unaudited Reconciliation of Non-GAAP Financial Measures (a) Consistent with the required disclosures under U.S. GAAP in the year of adoption of ASC 606 and ASC 853, we are providing information in each reporting period during the year of adoption on what revenue would have been under our historical
Slide 27: 2019 Guidance
Building Value 2019 Guidance ABM. Year Ending October 31, 2019 Reconciliation of Estimated Income from Cont jing Operations per Diluted Share to Estimated Adjusted Income from Continuing Operations per Diluted Share (c) Low Estimate High Estimate Income from continuing operations per diluted share (
Slide 28: Contact Us
Contact Us INVESTOR RELATIONS Susie A. Choi (Kim) (212) 297-9721 susie.kim@abm.com 28