Slide 1: 2019 Full Year Results
ple Strong. Momentum. 2019 Full Year Results ©OOLO Datashred on Technology
Slide 2: Highlights – Strong momentum and cash generation
Highlights – Strong momentum and cash generation Operational highlights OO Smooth executive transition +10% +9.5% OO Restore Records Management net box growth of 1.5% OO Restore Datashred operating performance strong, largely offsetting £215.6m 27.6p paper price headwinds OO Restore Digital contract
Slide 3: Financial Review
Financial Review 2019 Full Year Results 2
Slide 4: Financial Review
Financial Review OO Strong revenue growth of +10% comprising organic +5% and OO Excellent free cashflow generation of £42.9m acquisition related +5% OO In line with guidance, pro-forma EBITDA leverage reduced from OO Strong growth in adjusted profit before tax of 13% 2.1x to 1.6x OO Operating perfor
Slide 5: Consolidated Income Statement
Consolidated Income Statement Revised reporting Revenue (£’m) basis Consistent reporting basis Change 10.0 215.6 10.1 2019 2019 2018 195.5 Revenue (£’m) 215.6 215.6 195.5 +10% Statutory PBT (£’m) 24.8 27.8 21.0 +32% Adjusted PBT (£’m)* 35.6 42.4 37.5 +13% EBITDA** 70.0 54.0 48.2 +12% Average number
Slide 6: Document Management
Document Management Revised reporting Revenue (£’m) basis Consistent reporting basis Change 159.5 Revenue Restore Records Management (£’m) 2019 95.9 2019 95.9 2018 86.5 +11% 147.6 +8% Restore Datashred (£’m) 41.0 41.0 41.8 -2% Restore Digital (£’m) 22.6 22.6 19.3 +17% 159.5 159.5 147.6 +8% Margin Op
Slide 7: Relocation
Relocation Revised reporting Revenue (£’m) basis Consistent reporting basis Change 56.1 Revenue Restore Harrow Green (£’m) 2019 41.5 2019 41.5 2018 37.6 +10% 47.9 +17% Restore Technology (£’m) 14.6 14.6 10.3 +42% 56.1 56.1 47.9 +17% Margin Operating Margin 7.7 7.2 5.8 +24% Operating Margin % 13.7% 1
Slide 8: Exceptional Costs
Exceptional Costs Revised reporting Exceptional costs (£’m) basis Consistent reporting basis Change 8.5 2019 2019 2018 Transaction costs 0.1 0.1 2.4 -96% Restructuring costs 2.3 2.3 4.6 -30% Other exceptional costs 0.3 0.3 1.5 -80% 2.7 2.7 8.5 -68% 2.7 OO Significant reduction in exceptionals as a r
Slide 9: Cash Flow
Cash Flow Revised reporting basis Consistent reporting basis Change 2019 2019 2018 £’m £’m £’m Adjusted EBITDA 70.0 54.0 48.2 +12% OO Strong conversion of EBITDA to cash Cash exceptionals (2.7) (2.7) (8.5) -68% OO IFRS 16 impact on shape of cashflow Interest (8.7) (3.1) (3.6) -14% Tax (5.7) (5.7) (3
Slide 10: Net Debt Reduction
Net Debt Reduction Net debt @ 31 December 2018 Net debt @ 30 June 2019 Net debt @ 31 December 2019 £111.3m £95.0m £88.5m Leverage 2.1x Leverage 1.8x Leverage 1.6x OO Low exceptional items and increased EBITDA and strong conversion to free cashflow of £42.9m OO Ordinary run rate in capex £9m and divi
Slide 11: Balance Sheet
Balance Sheet Revised reporting basis Consistent reporting basis 2019 2019 2018 £’m £’m £’m OO Increase in non-current assets on adoption of Non-current assets 449.8 334.0 335.5 IFRS 16 with recognition of right of use assets Trade and other current assets 49.3 49.3 49.8 of £115.1m Cash and cash equ
Slide 12: Financial Summary
Financial Summary OO Double digit growth in revenue and profit OO Demonstrated free cashflow quality and high conversion of EBITDA to cash (80%) OO Reduction in pro forma EBITDA leverage from 2.1x to 1.6x OO Strong working capital ratio of 1.5 (2018: 1.6) OO Adjusted EPS growth of 9.5% with high div
Slide 13: Operational Review
Operational Review 2019 Full Year Results 12
Slide 14: Strong market position with room to grow
Predictable Recurring Revenues OO Restore Records Management c.70% of the gross profit Attractive Operating margins with opportunity to grow OO 21.5% up from 21.1% Strongly cash generative OO Leverage reduced from 2.1x to 1.6x Participate in markets of £1.8 bn and growing at c.3%pa and overall we ha
Slide 15: Customers are demanding more from us
Customers are demanding more from us Restore has a unique breadth of capability which is key to meeting customers’ evolving needs What customers want? What we deliver? Securely store my past/present & help me transition to digital Secure my data when not needed Help me when my business changes 2019
Slide 16: Clear Strategy to grow
Clear Strategy to grow Profitable growth and cash generation th w ro Ac ic G Engaged Team 4 of 5 qu markets Organ Customer isitio Excellence Scale High Retention Creating Stakeholder ns Incremental Capability Cross Selling Value Online Sales & Property Manage Service Rationalisation Risk Cash Conver
Slide 17: Restore Records Management
Restore Records Management OO 2% organic growth Growth Strategy OO Increased operating margins OO Growth from Existing + New Customers OO 1.5 % net box growth OO Improve Margin OO More normalised perm outs/ destructions OO Potential further small acquisitions OO Optimal occupancy rate at 95% OO TNT
Slide 18: Restore Datashred
Restore Datashred OO Stable profit performance Growth Strategy OO Reduction in costs year-on-year OO Growth share organically OO New Managing Director in role – Q4 2019 OO Improve margin OO Paper prices decline from Q2 2019 OO Acquisitions in a fragmented market • But with only 29% revenue reliant o
Slide 19: Restore Digital
Restore Digital OO Good revenue growth of 17% Growth Strategy OO Profit up slightly despite extra cost with new project wins OO Increase market share organically OO Improving sales outlook OO Margin expansion through change to product mix and operational improvement OO Significant wins OO Acquisitio
Slide 20: Restore Harrow Green
Restore Harrow Green OO 10% organic growth Growth Strategy OO Very strong London performance OO Maintain market leadership and grow share organically OO Increased margin with highly optimised resourcing OO Product mix & productivity to maintain margins OO Winner of prestigious partner in relocation
Slide 21: Restore Technology
Restore Technology OO Strong revenue growth of 42% Growth Strategy • 15% organic growth OO Significantly increase channel mix OO Number two with <10% share OO Continue to move to a service model • Growing + Fragmented market OO Margin improvement using existing capacity • Significant scope for conso
Slide 22: Leveraging the Scale & Costs of the whole company
Leveraging the Scale & Costs of the whole company OO A focus of the strategy is to deliver margin expansion. Each business unit has a plan to improve efficiency, product profitability and cost advantage with scale. OO AND In addition to this we are driving a whole of company focus in four specific a
Slide 23: Acquisition Strategy
Acquisition Strategy OO In 2019 we deliberately reduced acquisitions to ensure we 2019 Acquisitions focussed on; Restore Technology – integrating the prior year TNT BS acquisition OO Secure IT Destruction Ltd June 2019 – demonstrate the cash generation of the company IT Recycling business focusing o
Slide 24: Summary and Outlook
Summary and Outlook OO Another strong performance in 2019 OO Restore Records Management – Delivering growth OO Excellent cash generation OO Restore Datashred – Stable performance with acquisition opportunity OO A clear strategy for growth OO Restore Digital – Good growth and new wins OO Strong Marke
Slide 25: Appendix
Appendix 2019 Full Year Results 24
Slide 26: IFRS 16
IFRS 16 IFRS 16 ‘Leases’ was issued in January 2016. The Group has applied As a result of these changes, the Group has reported an adjusted the standard from 1 January 2019 using the modified retrospective statement of EBITDA in order to calculate an adjusted proforma approach and as such prior year
Slide 27: Alternative Performance Measuring
Alternative Performance Measuring Revised reporting basis Consistent reporting basis 2019 2019 2018 OO Transition year with adoption of IFRS 16, £’m £’m £’m ‘Leases’, impact of £3m on PBT Operating profit – continuing operations 34.4 31.7 24.8 Adjustments for: OO Change in treatment of share-based A
Slide 28: For more information please see www.restoreplc.com
15/19 Cavendish Place London, W1G 0QE T: 020 7409 2420 E: info@restoreplc.com W: www.restoreplc.com For more information please see www.restoreplc.com