Slide 1: Fourth Quarter 2016 Teleconference
Cover Slide Title (20pt. Bold) Fourth Quarter 2016 Teleconference December 14, 2016
Slide 2: Agenda
Agenda 2 4 5 Full Year 2016 Review Capital Structure Forward - Looking Statements and Non - GAAP Financial Information: Our discussions during this conference call will include forward - looking statements. Actual results could differ materially fro m those projected in the forward - looking stateme
Slide 3: Purpose, Vision, Mission
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 ss
Slide 4: Fourth Quarter 2016 Review
Fourth Quarter 2016 Review Q4 FYI6 Adj. Income from Q4 FY16 Revenue Continuing Operations Q4 FYI6 Adj. EBITDA Up y-o-y Down y-o-y Down y-o-y $13223 $1,277.0 _ $69.4 E $61: _ Oo = | oo 2015 2016 2015 2016 2015 2016 + Increase of 35% y-o-y + Decrease of 71% y-o-y = Decrease of 11.5% y-o-y + 20% organi
Slide 5: Segment Results
Segment Results 5 Janitorial Services • Revenues of $704.5m, increase of 2.3% y - o - y • Operating profit of $ 38.7 m, Operating margin of 5.5 % Facility Services • Revenues of $149.6m, increase of 2.9% y - o - y • Operating profit of $ 7.3 m, Operating margin of 4.9 % Parking • Revenues of $171.6m
Slide 6: Full Year 2016 Review
Full Year 2016 Review FY16 Adj. Income from Continuing Operations FY16 Revenue P y-ory $5,144.7 $4,8978 2015 2016 Up yoy $99.2 $92.9 2015 2016 FY16 Adj. EBITDA Up $206.0 2015 2016 + Increase of 50% y-o-y + 30% organicgrowth + Increase of 6.7%y-o-y + Margin increase of 3bps + Increase of 38% y-o-y +
Slide 7: Adjusted EBITDA Margin Recast
Adjusted EBITDA Margin Recast 7
Slide 8: Capital Structure
Capital Structure
Slide 9: Select Cash Flow & Balance Sheet Items: Leverage
Select Cash Flow & Balance Sheet Items Leverage 9 Q4 FY16 Leverage of 2.17x * Note: Acquisitions shown represent purchase above $15m Long - Term Leverage Target 2.5x Future State 1 Decrease in FY15 Q4 leverage due to disposition of Security * Leverage calculated as total indebtedness / pro - forma a
Slide 10: Select Cash Flow & Balance Sheet Items: Shareholder Return
Select Cash Flow & Balance Sheet Items Shareholder Return 10
Slide 11: Fiscal 2017 Outlook
Fiscal 2017 Outlook
Slide 12: Fiscal Year 2017 EPS Bridge
Fiscal Year 2017 EPS Bridge 12
Slide 13: Fiscal 2017 Outlook
Fiscal 2017 Outlook 13 Metric Amount Adjusted Income from continuing operations per diluted share $1.80 - $1.90 Income from continuing operations per diluted share $1.40 - $1.50 Depreciation & Amortization $57m - $61m Interest Expense $11m - $13m Capital Expenditures $60m - $70m Adjusted EBITDA Marg
Slide 14: New Segment Structure by Industry Group
14 New Segment Structure by Industry Group
Slide 15: New Segment Structure by Industry Group
($ in millions) Segment FY16 Revenues FY17 Operating Profit Margin % Business & Industry $2,941.2 low to mid 5% Aviation $851.9 mid to high 4% Emerging Industries 1 $802.2 mid to high 6% Technical Solutions 2 $432.8 mid to high 7% Government $116.6 less than 1% $5,144.7 15 New Segment Structure by I
Slide 16: Forward-Looking Statement
Forward - Looking Statement This presentation contains both historical and forward - looking statements. In this context, ABM Industries Incorporated (“ABM”) and its subsidiari es (collectively referred to as “ABM,” “we,” “us,” “our,” or the “Company”). We make forward - looking statements related t
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Slide 18: Unaudited Reconciliation of non-GAAP Financial Measures
Unaudited Reconciliation of non - GAAP Financial Measures 18 (a) The Company’s share of a gain associated with property sales completed by one of its investments in a low income housing part ner ship. (b) Represents severance and other costs related to the departure of our former CEO and CFO. (c) Re
Slide 19: Unaudited Reconciliation of non-GAAP Financial Measures
Unaudited Reconciliation of non - GAAP Financial Measures 19 ($ in millions, except per share amounts) (g) Adjusted EBITDA does not include interest income for certain long term energy contracts, in which case a gross up of both int ere st income and interest expense is being recorded.
Slide 20: 2017 Guidance
2017 Guidance ABM INDUSTRIES INCORPORATED AND SUBSIDIARIES 2017 GUIDANCE Year Ended October 31, 2017 Low Estimate High Estimate Reconciliation of Estimated Adjusted Income from Continuing Operations per Diluted Share to Estimated Income from Continuing Operations per Diluted Share Adjusted income fr