Mitie Group Plc · LSE:MTO
Mitie — Investor Day (September 2014)
18 slides from Mitie's investor day presentation, Sep 29, 2014
Slide 1: Capital Markets Day
Capital Markets Day 29 September 2014
Slide 2: Ruby McGregor-Smith CBE, Chief Executive
Ruby McGregor-Smith CBE Chief Executive 2
Slide 3: Mitie – the strategic outsourcing company
Mitie – the strategic outsourcing company Helping clients to run more efficient and effective businesses by looking after their facilities, their energy needs and the people they’re responsible for 3
Slide 4: Overview
Overview 27 years FTSE 250 70,000+ consecutive revenue support services employees: top 20 and earnings growth business UK private sector employer 64%:36% £2.1bn * £128m * private sector operating profit public sector revenue * Headline results for the financial year ended March 2014 Capital Markets
Slide 5: The shape of our business
The shape of our business Healthcare £92m Property Energy Solutions Management £16m £265m Revenue* £2,143m Hard FM Soft FM £579m £1,191m Facilities Management £1,770m *FY14 revenue Capital Markets Day Presentation September 2014 5
Slide 6: Facilities Management breakdown
Facilities Management breakdown Cleaning & environmental services £363m Integrated Hard and FM Soft FM £668m revenue* Security £1,770m £216m Catering and Technical and front of house Facilities Management building services £76m £1,770m £447m *FY14 revenue Capital Markets Day Presentation September 2
Slide 7: Investment case
Investment case • Strong organic growth potential, backed by a large order book and excellent revenue visibility • Very consistent margin track record – opportunity for gradual improvement • Blended group margin of 6.0%; major overhead investments made to support long- term growth and significant op
Slide 8: Investment considerations – strategic direction
Investment considerations – strategic direction • Substantially de-risked the business • On track to exit loss-making M&E engineering construction business by end of FY15 • All design and build contracts within Asset Management being reviewed • Further update to be provided at interim results • No e
Slide 9: Investment considerations – strategic direction
Investment considerations – strategic direction • Continued focus on sustaining our excellent track record of: • Cash conversion >80%, strong working capital discipline • Organic revenue growth – mid-single digit in the short-term • Margins – 6%, with aspirations to grow in medium to long-term • Cap
Slide 10: Long-term strategy and growth aspirations
Long-term strategy and growth aspirations Long-term organic Acquisition Business area Strategy growth potential potential • Remain the UK market leader in integrated FM No acquisitions of and continue growing with existing clients Facilities scale required – • Further grow our specialist single-serv
Slide 11: Market shift to integrated contracts
Market shift to integrated contracts £2.5bn Headline group revenue* £2.0bn 40% £1.5bn 42% 41% 41% 43% £1.0bn 29% 33% 46% £0.5bn 57% 58% 26% 31% 13% £0.0bn 2010 2011 2012 2013 2014 Single Bundled Integrated • Significant revenue still derived from single service contracts – opportunity to benefit fur
Slide 12: Exceptional revenue visibility
Exceptional revenue visibility 10.0 90% 9.5 9.0 8.5 85% 84% 85% 8.0 83% 7.5 81% 80% 7.0 6.5 6.0 74% 75% 75% 5.5 5.0 70% 4.5 4.0 65% 3.5 3.0 2.5 60% 2.0 1.5 55% 1.0 0.5 1.5 4.9 1.7 6.4 1.9 6.8 1.8 8.6 2.0 9.2 2.1 8.7 - 50% 2009 2010 2011 2012 2013 2014 Headline revenue £bn Aggregate order book £bn Se
Slide 13: Operational management
Operational management Mitie Facilities Management Property Energy Solutions New Ventures and Healthcare Corporate Soft FM Hard FM Management and International Bill Robson Patrick Stirland Patrick Stirland Development Martyn Freeman Pete Mosley Jeff Flanagan Integrated FM Social Housing Utilyx Care
Slide 14: Who you will meet today
Who you will meet today Division/Business Director Soft FM Martyn Freeman Cleaning Rob Cattell Environmental services (landscaping, waste, pest control) Richard Couzens Catering & front of house Allister Richards Security Bob Forsyth Integrated FM Phil Holland Lloyds Banking Group contract Chris New
Slide 15: Key clients by business
Key clients by business Cleaning & environmental Royal Cornwall St George’s First Great services Tesco Co-op Hospitals Hospital Western FY14 revenue: £363m Catering & front of house RBS Standard Life Channel 4 Olympia Co-op FY14 revenue: £76m Security Heathrow Eurostar AWE UBS Eurotunnel FY14 revenu
Slide 16: Key competitors by business
Key competitors by business Interserve/ Cleaning & environmental Initial OCS ISS Compass Servest services Cleaning Catering & front of house BaxterStorey Compass Sodexo Elior CH&Co Security G4S Securitas VSG/Compass ISS OCS Hard FM Interserve Integral Norland Carillion Cofely Integrated FM Carillion
Slide 17: Capital Markets Day Presentation September 2014
Capital Markets Day Presentation September 2014
Slide 18: Slide 18