Johnson Service Group Plc · LSE:JSG
Johnson Service — H1 2021 Earnings Presentation
30 slides from Johnson Service's earnings presentation, September 2021
Slide 1: Interim Results
Peter Egan Chief Executive Officer Yvonne Monaghan Chief Financial Officer Interim Results 6 months ended 30 June 2021 “Improving markets, strong balance sheet and confident of long-term growth.”
Slide 2: Operational Overview
2021 Interim Results Operational Overview “…focused on protecting the business through this unpredictable period….” 2
Slide 3: Management Actions Through the COVID-19 Crisis
2021 Interim Results Management Actions Through the COVID-19 Crisis “We have worked hard to strengthen the long-term prospects of the business and we are well positioned to continue to support our people, customers and the communities in which we operate to emerge stronger from the COVID-19 pandemic
Slide 4: Operational Performance Through the COVID-19 Crisis
2021 Interim Results Operational Performance Through the COVID-19 Crisis • Health, safety and wellbeing of our people prioritised at all times • Workwear continued to operate throughout the various lockdowns with volumes remaining robust • Majority of HORECA sites were mothballed throughout the firs
Slide 5: Financials
2021 Interim Results Financials “Strong balance sheet and liquidity…” 5
Slide 6: Income Statement
2021 Interim Results Income Statement 2021 H1 2020 H1 Revenue (£m) 99.6 114.8 Adjusted EBITDA (£m)1,2,3 16.9 24.9 Adjusted EBITDA margin (%)1,2,3 17.0 21.7 Adjusted operating loss (£m)2,3 (9.6) (9.5) Adjusted operating margin (%)2,3 (9.6) (8.3) Exceptional items (£m) 2.6 (0.5) Adjusted LBT (£m)2,3 (
Slide 7: Exceptional Items
2021 Interim Results Exceptional Items 2021 H1 2020 H1 2020 FY £m £m £m Restructuring costs1 - - (5.8) Insurance claims2,3 2.6 - 2.5 Impairment losses re insurance claims - (0.5) (1.0) Total Exceptional Items 2.6 (0.5) (4.3) Notes 1) No restructuring costs in 2021 H1. 2020 FY includes £4.7 million o
Slide 8: Cash Flow
2021 Interim Results Cash Flow £m 2021 H1 2020 H1 2020 FY Adjusted operating loss (9.6) (9.5) (12.1) Depreciation, impairment and software amortisation 26.5 34.4 66.4 Working capital (7.4) 16.8 24.4 Capital expenditure – fixed assets and software (8.7) (8.5) (21.4) – rental stocks (net) (13.8) (16.6
Slide 9: Other Financial Information
2021 Interim Results Other Financial Information Interest & Bank Facility Taxation Interest • Effective tax rate1 of 23.1% (2020 H1: 16.7%) based on expected rate for the full year • Interest cost of £1.6m including £0.8m relating to lease liabilities (2020 H1: £3.1m including £0.9m relating to leas
Slide 10: Operations
2021 Interim Results Operations “We continue to take pro-active actions to adapt our operations to ensure the Group can thrive…” 10
Slide 11: Capital Investment £8.7m
2021 Interim Results Capital Investment £8.7m Investment in H1 Leeds Hinckley Exeter New Glasgow New New garment processing New boiler processing finishing tunnel facility facility Grantham Southall Sturminster Perth Newton Double decker Complete rewire New ironing trailer & tractor of factory lines
Slide 12: Operational Performance: Workwear
2021 Interim Results Operational Performance: Workwear 12
Slide 13: Workwear
2021 Interim Results Operational Performance Workwear 2021 H1 2020 H1 Revenue (£m) 64.5 64.6 Adjusted EBITDA (£m)1,2,3 23.0 24.4 Adjusted EBITDA margin (%)1,2,3 35.7 37.8 Adjusted operating profit (£m)2,3 11.2 11.6 2,3 Adjusted operating margin (%) 17.4 18.0 Notes: 1. Adjusted operating profit plus
Slide 14: Operational Performance: Workwear
2021 Interim Results Operational Performance: • All sites continued to operate during lockdown Workwear • Volumes remained robust and reached 98% of normal levels in June 2021 • Customer retention levels remain high at 95% (2020: 94%) • Existing customer satisfaction at 87%, the highest score ever a
Slide 15: Operational Performance: HORECA
2021 Interim Results Operational Performance: HORECA Hotel, Restaurant & Catering 15
Slide 16: HORECA
2021 Interim Results Operational Performance HORECA Hotel, Restaurant & Catering Linen Hotel Linen Hotel, Restaurant & Catering 2021 H1 2020 H1 Revenue (£m) 35.1 50.2 Adjusted EBITDA (£m)1,2,3 (3.5) 2.7 Adjusted EBITDA margin (%)1,2,3 (10.0) 5.4 Adjusted operating loss (£m)2,3 (18.2) (18.8) Adjusted
Slide 17: Operational Performance: HORECA
2021 Interim Results Operational Performance: • Significant proportion of employees furloughed or flexi- HORECA furloughed in Q1 Hotel, Restaurant & • Many sites mothballed in first quarter of the year Catering • Some sites remained open to service hotels for key workers and those acting as quaranti
Slide 18: Our Customers
2021 Interim Results Our Customers “Customer communication maintained in order to foster our strong, long-term relationships.” 18
Slide 19: Our Customers
2021 Interim Results Our Customers 19
Slide 20: Resetting and refreshing our sustainability approach
2021 Interim Results Resetting and refreshing our sustainability approach “Sustainability must be used in the widest possible way to encompass all our environmental and social impacts…” 20
Slide 21: Sustainability Approach
2021 Interim Results Sustainability Approach Current Activities • Appointment of Head of Sustainability in April 2021 • Review of current activities and completion of sustainability materiality assessment • Data reviews underway (diversity, carbon, waste) • Business in the Community (BiTC) membershi
Slide 22: Sustainability Approach
2021 Interim Results Sustainability Approach Key Priority Focus Areas Environment • Low Carbon Transition • Water Management • Waste Management (particularly end of life textiles and single use plastic) People • Reward & Recognition • Equality, Diversity & Inclusion (ED&I) • Culture & Engagement Soc
Slide 23: The Future
2021 Interim Results The Future “….we are well placed to drive growth in our performance as we move through the remainder of the year and beyond.” 23
Slide 24: Strategic Plan
2021 Interim Results Strategic Plan Organic Investment M&A Social & Sustainability ▪ Market leading position within Workwear & HORECA ▪ National coverage; local service ▪ Dedicated to providing first class customer service ▪ Recovery of divisional margins over the medium term ▪ Continuing capital in
Slide 25: Post COVID-19
2021 Interim Results Post COVID-19 Workwear ▪ Maintain our high levels of customer retention and satisfaction ▪ Continued rollout of new laundry management IT platform throughout 2021 ▪ Majority of remaining estate to apply for EN 140651 certification HORECA ▪ Outlook continues to be positive as the
Slide 26: The Future – Confident of Medium-Term Growth
2021 Interim Results The Future – Confident of Medium-Term Growth “With our strong balance sheet, established market position and reputation for quality service, we remain confident in the Group’s medium-term growth prospects as the economy and markets we serve recover.” Organic Growth Investment Ac
Slide 27: Appendices
JOHNSON Service Group PLC Appendices
Slide 28: Segmental Analysis
2021 Interim Results Appendix 1 Segmental Analysis 2021 H1 2020 H1 Adjusted Adjusted Operating Adjusted Operating Adjusted 1,2 1,2,3 1,2 1,2,3 Revenue Profit / (Loss) EBITDA Revenue Profit/ (Loss) EBITDA £m £m £m £m £m £m Workwear 64.5 11.2 23.0 64.6 11.6 24.4 HORECA 35.1 (18.2) (3.5) 50.2 (18.8) 2.
Slide 29: Financial Track Record
2021 Interim Results Appendix 2 Financial Track Record Revenue (£m) Adjusted EBITDA (£m) Adjusted Diluted EPS (p) 350.6 119.0 321.1 10.5 290.9 101.4 9.3 92.3 8.7 256.7 7.6 229.8 82.4 53.6 (3.4) 2016 2017 2018 2019 2020 2016 2017 2018 2019 2020 2016 2017 2018 2019 2020 Adjusted Operating Profit (£m)
Slide 30: Pre-COVID Performance Built on Buy-and-Build Strategy
2021 Interim Results Appendix 3 Pre-COVID Performance Built on Buy-and-Build Strategy 250 1st Covid 200 Lockdown Share Price (pence) Placing 150 100 2nd & 3rd Covid Lockdown 50 2014 2015 2016 2017 2018 2019 2020 2021 30
Johnson Service Group — H1 2021 Earnings Presentation on 6ix