Slide 1: H1 2020 results - July 29, 2020
H1 2020 results - July 29, 2020 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: H1 2020 business highlights
H1 2020 business highlights H1 2020 financial performance Outlook 3
Slide 4: Remarkable H1 achievements in an unprecedented environment
Remarkable H1 achievements in an unprecedented environment: EBITDA margin slightly up & strong improvement of free cash flow Very resilient H1 2020 Immediate actions to limit the Strong liquidity and covenant financial performance impact on margins and strong waived until December 2021 focus on cash
Slide 5: Non-essential retail was largely shut down in Europe as of mid-March
Non-essential retail was largely shut down in Europe as of mid-March, with a very material impact for Elis Implementation of confinement measures and/or closure of non-essential stores across Elis’ main countries in Europe Elis’ annual results presentation Elis’ press releases on Covid-19 1 2 3 4 5
Slide 6: Our end-markets are all impacted, at different levels
Our end-markets are all impacted, at different levels H1 2020 Low point End market organic during Main revenue contributors Main contributors to 2019 revenue revenue lockdown Industry Food processing: 25% Pharma: 20% c. -5% c. -15% Water / waste management:20% 29% of total 2019 revenue Automotive: 1
Slide 7: H1 organic revenue significantly impacted by Covid-19
H1 organic revenue significantly impacted by Covid -19, especially in Southern Europe, UK & Ireland and France H1 2020 organic revenue evolution by geography +3.6% -6.0% -7.1% -14.7% -20.5% -26.5% -31.6% France Central Scandinavia & UK & Ireland Southern Latin Group Europe Eastern Europe Europe Amer
Slide 8: Elis has taken immediate operational actions to preserve revenue, margins and cash
Elis has taken immediate operational actions to preserve revenue, margins and cash generation Shutdown of plants ✓ Up to c. 100 plants shut down at Group level during lockdown to reflect the decrease in our client activity ✓ c. 20 plants still closed as of today, 5 plants permanently shut down Headc
Slide 9: Slight EBITDA margin improvement in H1 on speedy cost adjustments
Slight EBITDA margin improvement in H1 on speedy implementation of significant cost adjustments in all regions Revenue loss EBITDA loss Cost-savings achieved on the back of: Absorption of End market H1 2020 H1 2020 topline decrease Phase 1 (March-May): Swiftly react to the crisis vs H1 2019 vs H1 20
Slide 10: France: Performance impacted by the weight of Hospitality in the mix
France: Performance impacted by the weight of Hospitality in the mix Strong impact of confinement measures on FY 2019 revenue breakdown by end-market Hospitality Hospitality normally represents 1/3 of Group revenue in France 32% 34% Hospitality Hotel activity dropped to virtually zero after Healthca
Slide 11: Central Europe: Good topline resilience, strong EBITDA margin improvement
Central Europe: Good topline resilience along with strong EBITDA margin improvement Good resilience in Germany FY 2019 revenue breakdown by end-market Resilient organic revenue in H1 (c. -5%), notably thanks to Healthcare activity 17% 15% Hospitality No impact seen in Netherlands, Poland, Czech Repu
Slide 12: Scandinavia & Eastern Europe: Moderate revenue slowdown but EBITDA margin improvement
Scandinavia & Eastern Europe: Moderate revenue slowdown but EBITDA margin improvement Contained revenue decrease in Denmark, FY 2019 revenue breakdown by end-market Sweden and Finland Organic revenue down c. -11% in 15% 25% Denmark, c. -7% in Sweden and c. -6% in Hospitality Finland in a context of
Slide 13: UK & Ireland: Sharp slowdown in Hospitality and in Industry
UK & Ireland: Sharp slowdown in Hospitality and in Industry led to both topline and margin decline Organic revenue down c. -30% in H1 FY 2019 revenue breakdown by end-market Hospitality, Industry and Trade & Services 13% combined represent 2/3 of the region’s activity and have been significantly 31%
Slide 14: Southern Europe: Topline and margins significantly impacted by Hospitality
Southern Europe: Topline and margins significantly impacted by Hospitality in Spain and Portugal After a very good start of the year, Spain FY 2019 revenue breakdown by end-market and Portugal were strongly impacted due to their exposure to Hospitality 16% Double-digit organic decline since Hospital
Slide 15: Latin America: Resilient business despite a slowdown in March and April
Latin America: Resilient business despite a slowdown in March and April H1 organic revenue growth up +3.4% FY 2019 revenue breakdown by end-market Our Industry business, predominantly with 8% food processing clients, has held up quite 21% 3% well Hospitality Healthcare Healthcare has been slowing do
Slide 16: 3 acquisitions closed in H1 2020, plus Kings Laundry in Ireland in July
3 acquisitions closed in H1 2020, plus Kings Laundry in Ireland in July Hospitality July 2020 (signed in July 2018) 2019 revenue: c. €35mn Healthcare May 2020 Revenue: c. £4mn Healthcare March 2020 Revenue: c. €20mn Hospitality February 2020 Revenue: c. €4.2mn H1 2020 M&A impact: +0.7% 16
Slide 17: H1 2020 financial performance
H1 2020 business highlights H1 2020 financial performance Outlook 17
Slide 18: Headline net result of c. €50mn in a context of severe topline contraction
Headline net result of c. €50mn in a context of severe topline contraction (In €mn) H1 2020 H1 2019 % change Revenue 1,351.7 1,603.7 -15.7% EBITDA 439.9 519.0 -15.3% Higher D&A despite lower linen consumption as a result As a % of revenue 32.5% 32.4% +20bps of a higher asset base resulting from the
Slide 19: H1 2020 headline net result calculation
H1 2020 headline net result calculation (In €mn) H1 2020 H1 2019 Net result from continuing operations (21.0) 59.9 Amortization of intangible assets recognized in a business 36.5 34.2 combination* IFRS 2 expense* 6.2 4.4 Accelerated amortization of loans issuing costs * 0.1 1.3 Breakup costs (refina
Slide 20: Free cash flow after lease payments up +€75mn yoy in H1
Free cash flow after lease payments up +€75mn yoy in H1 (In €mn) H1 2020 H1 2019 EBITDA 439.9 519.0 Capex to sales ratio of 17,2% Exceptional items and variance of provisions (32.4) (8.1) reflecting the lower Acquisition and divestment transaction costs (1.3) (2.7) consumption of linen by our Other
Slide 21: H1 2020 financial charges (cash & non-cash)
H1 2020 financial charges (cash & non-cash) (In €mn) P&L (In €mn) Cash flow Financial debt interest (cash) (43.8) Financial debt interest (cash) (43.8) Leasing debt interest (cash) (4.9) Leasing debt interest (cash) (4.9) Adjustment accrued / non accrued interest 15.3 Interest rate swap (0.0) Notion
Slide 22: Elis has a flexible balance sheet with c. €1.1bn of available liquidity
Elis has a flexible balance sheet with c. €1.1bn of available liquidity A well-diversified financing Debt: Key H1 highlights As of 30 June 2020 Waiver obtained for the bank covenant test as of 30 June 2020, 31 December 2020 Bond (issued 10/2019) Coupon 1.0% and 30 June 2021 €500mn Maturity 2025 With
Slide 23: Key financial takeaways
Key financial takeaways Significant organic decrease, with the biggest impact in regions exposed to 11 Hospitality but strong resilience in Central Europe, Scandinavia and Eastern Europe and Latin America Resilient EBITDA margin at 32.5% (up +20bps yoy) on the back of speedy 22 operational adjustmen
Slide 24: Outlook
H1 2020 business highlights H1 2020 financial performance Outlook 24
Slide 25: The Group will continue to demonstrate business resilience
The Group will continue to demonstrate business resilience 4,500 4500 40% 4,000 4000 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% 31.5%* 35% 30.5% 31.1% 3,500 3500 30% 3,000 3000 25% Internet 2500 2,500 Subprime crisis and Spanish crisis bubble cris
Slide 26: July current trading: Industry and Trade & Services continue to pick up
July current trading: Industry and Trade & Services continue to pick up; Healthcare back to normal; Hospitality slightly better Industry Hospitality Healthcare Trade & Services Rev. down c. -5% in July Rev. down c. -55% in July Rev. around flat in July Rev. down c. -10% in July A very large part Fra
Slide 27: FY 2020 outlook
FY 2020 outlook Revenue Despite a marked increase of Hospitality in July, many uncertainties remain: ✓ Potential future impacts related to a second wave of Covid-19 ✓ Potential cost-cutting measures at our clients, as a result of an activity slowdown This does not allow us to provide a revenue outlo
Slide 28: Appendix: Restatement of H1 2019 figures
Appendix: Restatement of H1 2019 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
Slide 29: ELIS SA
Nicolas Buron Audrey Bourgeois ELIS SA Investor Relations Director Investor Relations 5, boulevard Louis Loucheur Tel: +33 1 75 49 98 30 Tel: +33 1 75 49 96 25 92210 Saint-Cloud Mob: +33 6 83 77 66 74 Mob: +33 6 99 47 80 56 France Email: nicolas.buron@elis.com Email: audrey.bourgeois@elis.com https: