Slide 1: 2021 Full Year Results
2021 Full Year Results
Slide 2: Restore is significantly larger and stronger and well positioned for continued expansion in 2022
Restore is significantly larger and stronger and well positioned for continued expansion in 2022 Business and Strategic Highlights Financial Highlights O Good performance across all business units contributing to growth, O Revenue up +28% to £234.3 million (2020: £182.7 million) with strong underlyi
Slide 3: Results demonstrate delivery against our ambitious growth strategy
Results demonstrate delivery against our ambitious growth strategy to grow revenue to £450-500m and profits >£150m Sustained EBITDA generation Revenue growth track record and high quality margins £150m+ £150m+ 500 500 150150 £450-500m £450-500m 400 400 120120 £292m £292m 300 300 £278m £278m c.£260m
Slide 4: Growth Quality: Continued execution of the strategy delivers against our targets
Continued execution of the strategy delivers against our targets Profit Roadmap Strategic Growth Targets Reduce 2017 2018 2019 2020 2021 Medium Term Targets Costs better for less Sustained Revenue 172.0 195.5 215.6 182.7 234.3 c.450-500m Expansion £800m+ cost of revenue to consolidate Profitable Org
Slide 5: Restructured Divisions aligned for growth
Restructured Divisions aligned for growth Digital & Information Management Secure Lifecyle Services Growth trends Growth trends Secure storage Secure data destruction and recycling Flexible working demands Workplace transformation Digitisation Rising technology lifecycle requirements Market size: £8
Slide 6: ESG Strategy: Strong, sustainable values and working practices
ESG Strategy: Strong, sustainable values and working practices Restore has engaged external advisors and sought feedback from stakeholders to develop a new and comprehensive ESG Strategy which is action oriented with measurable KPIs. Our Strategy Restoring our World Our Vision To be game changers in
Slide 7: Financial Overview
Financial Overview Restore is larger, stronger and growing 2021 Full Year Results 7
Slide 8: Consolidated Income Statement: Strong momentum and increase in scale
Consolidated Income Statement: Strong momentum and increase in scale 2021 2020 Change Group Revenue Growth (£’m) Revenue (£’m) 234.3 182.7 +28% 2021 Performance Momentum 30.0 234.3 Adjusted PBT (£’m)* 38.1 23.2 +64% Statutory PBT (£’m) 23.0 4.0 +475% 9.2 2.2 128.2 10.2 EBITDA (Post IFRS 16) (£’m)* 7
Slide 9: Divisions – Digital and Information Management
Divisions – Digital and Information Management: Organic core growing and transformative acquisitions Revenue 2021 2020 Change Revenue mix 2021 (£’m) Restore Records Management (£’m) 101.4 87.6 +16% Restore Digital (£’m) 36.9 18.5 +99% 27% 138.3 106.1 +30% Restore Digital Margin Operating Margin 42.5
Slide 10: Divisions – Secure Lifecycle Services
Divisions – Secure Lifecycle Services: High growth of Technology business and margin expansion Revenue 2021 2020 Change Revenue mix 2021 (£’m) Restore Technology (£’m) 28.1 15.3 +84% 39% Restore Datashred (£’m) 30.2 28.0 +8% Restore Harrow Green Restore Harrow Green (£’m) 37.7 33.3 +13% 32% 96.0 76.
Slide 11: Cashflow: Continued strong cash generation and substantial investment
Cashflow: Continued strong cash generation and substantial investment Cashflow £m 2021 2020 Free Cashflow as % of Net Operating Profit After Tax EBITDA 74.2 57.4 99% Working capital movements (12.1) 10.7 87%* 85%* Free cash as % of adjusted NOPAT Other movements (2.2) (1.2) 75% Target Operating Cash
Slide 12: Acquisition investment: Successful integration and strong returns
Acquisition investment: Successful integration and strong returns In year acquisitions: Post Tax ROIC O 8 acquisitions completed in 2021 24.0% O £86.3m invested with £66.7m in Digital and 22.7% Information Management and £19.6m in Secure Lifecycle Services 17.1% 16.8% O Low levels of acquisition exc
Slide 13: Balance Sheet: Strong foundations and leverage in line with expectations
Balance Sheet: Strong foundations and leverage in line with expectations 2021 2020 £’m £’m Non-current assets 514.4 428.5 O Strong balance sheet maintained with strong Trade and other current assets 58.3 42.4 underlying capital and leverage 1.8x in line with Cash and cash equivalents 32.9 26.4 targe
Slide 14: Cost outlook: Mitigation of anticipated inflation
Cost outlook: Mitigation of anticipated inflation 2021 Cost base Inflation Impact O Cost inflation varies by type of spend with largest spend on people £31.5m (staff + agency) Other costs O Typical cost of inflation is c.2% which is £2-3m across our cost lines O FY22 is anticipated to be higher, per
Slide 15: Business Overview
Business Overview Record financial results and transformative acquisitions. 2021 Full Year Results 15
Slide 16: Organic Growth
Organic Growth 1. Sales fly wheel to target 4-8+% organic revenue growth 2. Driven by a disciplined sales strategy Invest in Sales & 1 2 3 Marketing Increase the Then drive upsell: And drive >150 sales staff first sale cross-selling is all about more leads and growing upselling once the initial firs
Slide 17: Organic Growth – Our targets are clear
Organic Growth – Our targets are clear Business units with market leading growth rates 6 Priorities to drive Upselling Market Growth Our Target 1 Top 200 Focus Account Planning Records Management c.1-2% 3-5% Digital c.4% 5-15% New logo sales - swiftly follow up after customers who are 2 Datashred c.
Slide 18: Significant acquisition growth to scale and acquire new capabilities
Significant acquisition growth to scale and acquire new capabilities Strong M&A platform …with strong returns 4 Highly qualified and dedicated M&A team 24.0% 22.7% 4 Significant cash flows to deploy 17.1% 16.8% 16.5% 4 Large and fragmented market 13.4% 12.5% 13.0% 10.1% 4 All acquisitions EPS accret
Slide 19: Restore Records Management
Restore Records Management FY 2021 Results Growth Strategy O £101.4m revenue, +16% YoY (6% organic, Organic 6% acquisition, 4% COVID19 repair) O 3-5% organic revenue growth with 1-2% organic box growth O 1.3% organic net box growth (2020: 0.9%) with c.22m boxes under management O Leveraging strong r
Slide 20: Restore Digital
Restore Digital FY 2021 Results Growth Strategy O Transformational year for Restore Digital Organic following the successful acquisition and O Physical to Digital consulting & services integration of EDM O Digital mailroom capability & expertise O Doubled revenues to £36.9m (2020: £18.5m) O Compelli
Slide 21: Restore Technology
Restore Technology FY 2021 Results Growth Strategy O UK’s largest and market leading IT Lifecycle Organic services business O Continue to outpace a fast-growing market O Growth through existing and new clients, enterprise and O Step change in scale and performance, SME, commercial and public sector
Slide 22: Restore Datashred
Restore Datashred FY 2021 Results Growth Strategy O £30.2m Revenue, +8% vs 2020 Organic O Activity levels saw substantial recovery in H2, O Reactivate customer base and continue to following H1 restrictions. They returned to c.84% improve scale of pre-pandemic by Q4 O Focus on automation and enhance
Slide 23: Restore Harrow Green
Restore Harrow Green FY 2021 Results Growth Strategy O Grew revenues +13% to £37.7m despite Organic significant economic volatility O Leverage strong customer relationships to maximise opportunities resulting from pent up O Record profits achieved in 2021, with growth in storage and value added serv
Slide 24: Summary and Outlook
Summary and Outlook Summary Outlook O Record financial performance in The new financial year has started well, with continued momentum underpinned by strong activity levels. The underlying demand for our mission critical services continue to build and we will continue to further extend our 2021 demo
Slide 25: A high growth business with a clear and compelling investment case
A high growth business with a clear and compelling investment case O Leading positions in growth markets O Delivering mission critical services with long term structural positive trends O Ambitious ESG Strategy ‘Restoring our World’ O Fragmented markets with significant acquisition opportunity O Hig
Slide 26: For more information please visit: www.restoreplc.com
For more information please visit: www.restoreplc.com Please see these short videos below: 15/19 Cavendish Place London, W1G 0QE T: 020 7409 2420 E: info@restoreplc.com W: www.restoreplc.com
Slide 27: Appendix
Appendix 2021 Full Year Results 27
Slide 28: Leading positions in large, growing and fragmented markets
Leading positions in large, growing and fragmented markets with a strategy to deliver significant growth £1.9b market and growing Market Position No.2 No.1 No.1 No.2 No.1 Market Size £485m £320m £550m £200-210m £350m £1.9b Market Growth c.1-2% c.4% c.6% c.0-1% c.1% c.3% Market Share 22% 15% 6% 19% 1
Slide 29: Strategic acquisitions delivering strong returns and value enhancement
Strategic acquisitions delivering strong returns and value enhancement Strategy Market Structure 2021 Delivery Highly addressable 8 acquisitions acquisition opportunity of £86.3m deployed £800M+ Partial Consolidation Highly Fragmented Extremely Fragmented Highly Fragmented Fragmented Others Restore
Slide 30: Divisions – Appendix
Divisions – Appendix Digital and Information Management Secure Lifecycle Services Revenue 2021 2020 2019 Revenue 2021 2020 2019 Restore Records Management (£’m) 101.4 87.6 95.9 Restore Technology (£’m) 28.1 15.3 14.6 Restore Digital (£’m) 36.9 18.5 22.6 Restore Datashred (£’m) 30.2 28.0 41.0 138.3 1
Slide 31: Glossary - Definitions and calculations
Glossary - Definitions and calculations Term Definition & calculation Adjusted Profit before tax Adjusted profit before tax is stated before amortisation of intangible assets, impairments and exceptional items (reconciled in note 9) (Adj PBT) Adjusted Free Cashflow Net cash generated from operating