Slide 1: 2019 Half Year Results
2019 Half Year Results ple
Slide 2: Highlights
Highlights £106.2m* REVENUE (£'M) £20.1m ADJUSTED PROFIT BEFORE TAX* (£’M) £13.1p ADJUSTED BASIC EARNINGS PER SHARE* (P) £2.4p (Interim) DIVIDEND PER SHARE (P) ©©O®@ Financial Highlights* ° Group revenue up 15% to £106.2m Group adjusted profit before tax up 17% to £20.1m Adjusted operating margins u
Slide 3: Financial Review
Slide 4: Consolidated Income Statement
df ple Consolidated Income Statement (Using consistent accounting policies) H1 2019 H1 2018 Change Revenue £'m 3.0 106.2 Revenue (£m) 106.2 92.7 15% 10.5 ; Adjusted operating profit (£m) * 22.2 18.8 18% Wi 92.7 Finance costs (£m)* 21 16 31% Adjusted PBT (£m) * 20.1 172 17% Standard tax charge 19% 19
Slide 5: Document Management
Document Management H1 2019 Hi 2018 YOY change Revenue (£m) 80.4 699 15% Operating profit (Em) 21.5 176 22% Operating margin 26.7% 25.2% +150 bps o Revenue by business stream: o Restore Records Management £47.8m (2018: £38.8m) o Restore Datashred £21.0m (2018: £20.8m) o Restore Digital £11.6m (2018:
Slide 6: Relocation
Relocation H1 2019 H1 2018 YOY Change Revenue (£m) 25.8 228 13% Operating profit (Em) 2.7 26 4% Operating margin 10.5% 114% -90 bps o Revenue by business stream: o Restore Harrow Green £19.7m (2018: £17.6m) o Restore Technology £6.1m (2018: £5.2m) o Printer Cartridge Recycling disposed of in Februar
Slide 7: Exceptional Costs
Exceptional Costs £m H1 2019 H1 2018 Restructuring costs 18 20 Transaction costs 0.0 17 Other exceptional costs 0.2 06 Total exceptional costs 2.0 43 o Significant reduction in exceptional costs, as anticipated o Restructuring costs reflect o Completion of the following integration milestones on TNT
Slide 8: Cash Flow
Cash Flow H1 2019 £m H1 25.9 (2.0) Adjusted EBITDA after exceptionals 23.9 Working capital 3.7 Net cash from operations 27.6 (4.8) (37.2) ° Operational cash conversion of 115% ° H1 working capital movement reflects: o Improvement in working capital cycles o Some short term timing benefits on credito
Slide 9: Balance Sheet and Debt Facilities
ple Balance Sheet and Debt Facilities H1 2019 H1 2019 H1 2018 Inc IFRS 16 Ex IFRS 16 Leverage (ex leases) Non-current assets 4527 336.3 3319 25 Trade and other current assets 52.5 52.5 553 Cash and cash equivalents 20.0 20.0 15.7 Current Assets 72.5 72.5 710 20 Trade and other current liabi 494 49.4
Slide 10: Financial Summary
Financial Summary o Revenue up 15%, with improvement in organic growth to 3% o Operating margins improved to 21% o Interim dividend up 20% to 2.4p o Significant step forward in operational cash generation assisted by material reduction in exceptional costs o Adjusted leverage 1.8x EBITDA at 30 June
Slide 11: Business Review
Slide 12: CEO's initial impressions
CEO's initial impressions o Strong market position o Known for delivering high customer satisfaction with consistent repeat business o Well invested and highly integrated o Culture is ‘can do’ and ‘cost conscious’ o Strong balance sheet and cash generation Half Year Results 2019
Slide 13: Customers are demanding more from us
Customers are demanding more from us CUSTOMERS WANT? WE DELIVER Restore 7? Records Management ~ Securely store our past/present Restore & = Restore Datooed Help me transition to digital “MS “™ Secure my data when not needed =) Restore Restore jatashres IT Lifecycle Services NY Help me when my busine
Slide 14: Going forward
Going forward o All businesses can grow market share organically o Improve customer experience from ‘good to great’ with increasing digital and data analytics investments o There is room to be more efficient across the Group o Acquisition opportunities for scale & capability particularly in four of
Slide 15: Restore Records Management
ple Restore Records Management o Revenue growth 23% o Organic growth of 4% o =©Net box growth in H1 o All prior acquisitions now fully integrated o Operating margins improving in line with expectations o Rainham build on track for new boxes in Q1 2020 o Property rationalisation continues in South Ea
Slide 16: Restore Datashred
pic Restore Datashred o Revenue growth of 1% and sequential profit improvement vs H2 2018 o Customer satisfaction levels remain high o Newmanaging director appointed o Growing demand in line with increased focus on data security o Paper prices softening towards end of H1 o Well invested business wit
Slide 17: Restore Digital
pie Restore Digital o Strong revenue growth of 13% yoy o Key exam contract successfully executed o Major win in the public sector £9m+ over 3 years o GP scanning contract extension o Well invested business with 9 sites to provide national coverage o Improving sales pipeline © Digital Half Year Resul
Slide 18: Restore Harrow Green
Restore Harrow Green o Strong revenue growth 12% (6% net of pass through yoy) o Market leader with a national presence o London market performing well, regions performed in-line o Investment in new vehicles to meet new London ULEZ o Customer base wanting more services from us — storage, shredding, r
Slide 19: Restore Technology
Restore Technology o Strong revenue growth 17% o Extra cost of new Bedford facility opened in H2 2018 o ©Well invested with capacity to grow margins as volume grows o Completed two small acquisitions to add extra certifications, customers and capability to sell parts* o More pressure on companies to
Slide 20: Summary and Outlook
Summary and Outlook ° Good first half performance Strong cash generation and net debt reduction Consistent service delivery for customers All prior acquisitions integrated Excellent platform for continued growth, both organically and through acquisitions; ° ° ° ° The Board's expectations for the ful
Slide 21: Restore in numbers
Restore in numbers abet bite i | MILLI ON Lite successive i p> ees year of double-digit ; me in 201 revenue growth.” | end ‘£1955 fy 22% bls #82209 | = TOTAL EMPLOYEES AT { DECEMBER 2018 29% ‘numbers taken from the Annual Report. year ending 31 December 2018, Half Year Results 2019 18
Slide 22: Appendix: Summary of changes to accounting policies
Appendix Summary of changes to accounting policies o IFRS 16 has been adopted from 1 January 2019. Lease payments which were treated as opex in the income statement have been replaced by assets and liabilities/debt on the statement of financial position which generate interest and depreciation charg
Slide 23: Half Year Results 2019
Restore ple 15/19 Cavendish Place London, W1G OQE T: 0207409 2420 E: info@restoreple.com W: wwwirestoreple.com For more information please see ‘www.restoreplc.com