Slide 1: Final Results: 12 months ended 31 December 2017
aC RNSON FINAL RESULTS 12 months ended 31 December 2017 Chris Sander Chief Executive Officer Yvonne Monaghan Chief Financial Officer Peter Egan Managing Director, Workwear
Slide 2: Financial Highlights
2 Financial Highlights Strong financial performance reflecting organic growth & successful delivery of earnings from acquisitions - Revenue up 13.3% to £290.9m - Adjusted operating profit up 14.9% to £43.3m1 - Adjusted profit before taxation up 17.5% to £39.7m1 Revenue - Adjusted diluted earnings pe
Slide 3: Group Financial Results 2017 vs 2016
3 2017 2016 Increase Revenue (£m) 290.9 256.7 13.3% Adjusted operating profit (£m)1 43.3 37.7 14.9% Adjusted operating margin (%)1 14.9 14.7 n/a Exceptional items (£m) (0.5) (1.0) n/a Adjusted PBT (£m)1 39.7 33.8 17.5% Adjusted EPS (p)1 8.7 7.6 14.5% Number of shares used in EPS calc2 369.0 356.9 n/
Slide 4: Cash Flow and Net Debt
4 £m 2017 2016 Adjusted operating profit 43.3 37.7 Depreciation and software amortisation (excl. exceptionals) 49.0 43.3 Working capital (excl. exceptionals) (0.8) 3.0 Capital expenditure – fixed assets (16.5) (14.6) – rental stocks (net) (41.0) (31.8) – fixed asset proceeds 0.2 0.1 Interest and tax
Slide 5: Key Projects Completed in 2017
5 Key Projects Completed in 2017 Southall (London Linen) £4.5m Chester (Afonwen) £3.5m Grantham (Stalbridge) £1.0m Letchworth (Apparelmaster) £1.0m Brighton (Apparelmaster) £0.7m
Slide 6: Interest, Bank Facility & Hedging, Tax, Pensions
6 Interest, Bank Facility & Hedging Tax Interest cost (excluding notional pension interest) of £3.2m Effective tax rate on adjusted profit before taxation1 of 19.1% (2016: £3.3m) (2016: 19.8%) Reduction in notional pension interest cost to £0.4m (2016: Benefits from prior year adjustments an
Slide 7: Strategic Priorities: Core Markets and Operational Efficiencies
7 Disposal of Drycleaning activities Development of core markets Delivery of operational efficiencies Continuity of margin Further investment in divisional operational teams Continued capital investment to increase production capacity & efficiency Development of a group-wide brand reco
Slide 8: PLS Acquisition
8 Modern and well equipped facility, located south of Edinburgh Predominantly serves the high volume hotel linen market throughout much of Scotland and North East England Processes some 350,000 pieces per week 120 employees Complements existing Afonwen and Bourne businesses £4.9m revenue
Slide 9: StarCounty Acquisition
9 Well invested 22,000 sq. ft. facility based in Wrexham Processing of both restaurant & catering work and high volume hotel linen for customers throughout the North West and the Midlands Processes some 350,000 pieces per week 110 employees Complements and extends the geographic coverage o
Slide 10: Workwear Results
10 2017 2016 Increase Revenue (£m) 122.4 117.7 4.0% Adjusted operating profit (£m)1 21.1 19.9 6.0% Margin (%) 17.2 16.9 n/a 17 2,200 370 1.3m Laundries Employees Vehicles Wearers Notes: 1) Before amortisation of intangible assets (excluding software amortisation), exceptional items and, in the case
Slide 11: Workwear Highlights
11 Underlying revenue growth of 4.0% Strong and successful year; new sales well ahead of expectations Customer retention in excess of 95% Production efficiencies and strong cost control led to an increased margin of 17.2% Successful renewal of a large number of key national contracts Int
Slide 12: HORECA Results
12 2017 2016 Increase Revenue (£m) 168.5 139.0 21.2% Adjusted operating profit (£m)1 26.8 21.8 22.9% Margin (%)2 15.9 15.7 n/a 16 3,100 370 8.5m Laundries Employees Vehicles Items HORECA includes five recognised brands Premium Restaurant High High High Linen & & Catering Volume Volume Volume Chefswe
Slide 13: HORECA Highlights
13 Overall revenue growth of 21.2% with all brands trading ahead of 2016 Underlying revenue growth of 6.0% Stalbridge new sales significantly ahead of expectations Trading benefitted from synergies across HORECA operations as well as from £2.6m of one-off, subcontracted work Successful ren
Slide 14: Our Customers
2017 FINALRESULTS/ 14 — Our Customers » C2 ACCORHOTELS >. ©) & CROWNE PLAZA C Gord » HOTELS & RESORTS DOUBLETREE a J 2 Samworth Brothers Premier Inn —_—_—E a ES CAPRICE hl COTE COPTHORNE BRASSERIE restaurants Holiday Inn Pears WarburtonS (FJOHNSON SERVICE GROUP PLC Travelodge
Slide 15: Five-Year Revenue, Profit, EPS and Dividend
15 Revenue (£m) Adjusted Operating Profit (£m) 300 290.9 50 43.3 256.7 37.7 40 188.2 200 155.0 30 25.9 136.2 20.2 20 15.4 100 10 0 0 2013 2014 2015 2016 2017 2013 2014 2015 2016 2017 Adjusted Fully Diluted EPS (p) Dividend per Share (p) 10.0 3.0 2.8 8.7 2.5 7.6 2.5 8.0 2.1 5.8 2.0 1.7 6.0 4.8 1.5 1.
Slide 16: Management Team
16 Yvonne Chris Peter Monaghan Sander Egan Chief Financial Officer Chief Executive Officer Chief Operating Officer1 Industry Experience: 34 Years Industry Experience: 42 Years Industry Experience: 26 Years TBA Mark Donald Gary Tim Woolfenden Smith Collis Morris Managing Director, Managing Director,
Slide 17: Shareholder Value: Growth Opportunities, Investment and Acquisitions
17 Shareholder Value Organic Growth Opportunities Investment Programme Acquisitions Strong new sales and customer retention To create a market-leading, best in class, Further synergy gains, including scale modern estate to support: efficiencies, anticipated from recent Boosted by: acquisitio
Slide 18: Thank You
(AJCHNSON THANK YOU
Slide 19: Segment Revenue and Adjusted Operating Profit
19 2017 2016 Adjusted Adjusted Revenue Operating Profit1 Revenue Operating Profit1 £m £m £m £m Workwear 122.4 21.1 117.7 19.9 HORECA 168.5 26.8 139.0 21.8 Textile Rental 290.9 47.9 256.7 41.7 Group Costs - (4.6) - (4.0) TOTAL 290.9 43.3 256.7 37.7 Note 1: Before amortisation of intangible assets (ex