Johnson Service Group Plc · LSE:JSG
Johnson Service — FY2022 Earnings Presentation
27 slides from Johnson Service's earnings presentation, March 2023
Slide 1: Final Results 31 December 2022
FINAL RESULTS 31 DECEMBER 2022 _ rm Chief Executive Officer Chief Financial Officer
Slide 2: Operational Highlights
JOHNSON Service Group PLC OPERATIONAL HIGHLIGHTS “Our scale, expertise and operational excellence mean that we are well placed to capitalise on opportunities as markets continue to recover."
Slide 3: Operational Highlights
2022 Final Results Operational Highlights tes JOHNSON \ Service Group PLC « HORECA volumes improved during the year to reach 93% of normal in the final quarter; we expect volumes to continue to increase through 2023 « Wecontinue to build strong relationships and strategic partnerships within HORECA,
Slide 4: Slide 4
Slide 5: Financial Highlights
2022 Final Results Financial Highlights & JOHNSON Service Group PLC 2022 20: Revenue (£m) 385.7 271.4 Adjusted EBITDA (£m)'23 104.9 679 Adjusted EBITDA margin (%)'23 27.2 25.0 Adjusted operating profit (€m)?3 41.2 127 Adjusted operating margin (%)?3 10.7 47 . Adjusted PBT (Em)* 38.2 94 Adjusted dilu
Slide 6: Energy and Employment Costs
Energy • Highly volatile market with unprecedented day ahead and forward pricing 2022 FY Cost Analysis • 2022 FY energy costs represented 9.4% (H1: 9.3%; H2: 9.5%) of revenue (2019 FY: 6.2%) • Material price increases implemented across our customer base to compensate 10.7% • Impact of energy prices
Slide 7: Cash Flow
2022 Final Results Cash Flow JOHNSON Service Group PLC 2022 2021 £ £m Adjusted operating profit 127 Depreciation, impairment and software amortisation 55.2 Working capital (19.8) fixed assets and software (24.4) Capital expenditure | rental stocks (net) (39.4) fixed asset proceeds - Interest (3.2) T
Slide 8: Other Financial Information
2022 Final Results Other Financial Information Interest « Interest cost of £3.0m including £1.5m relating to lease liabilities (2021: £3.3m and £1.6m respectively) + Notional pension interest cost of Enil (2021: £0.2m) reflects pension deficit at the start of 2022; cost in 2023 expected to be £0.5m
Slide 9: “Through the improving
“Through the improving we have been able to capital investment pl¢
Slide 10: Acquisition of Regency Laundry
2022 Final Results JOHNSON « Service Group PLC Acquisition of Regency Laundry « Acquisition of the entire issued share capital of Regency for a cash consideration of £5.75 million on a debt free, cash free basis and subject to an adjustment for normalised working capital « 26,000 sq ft leasehold pro
Slide 11: New HORECA Site
2022 Final Results JOHNSON w Service Group PLC New HORECA Site ¢ 46,000 sq ft strategically located leasehold site in the South East ¢ Capital investment: - c£16.0m in FY23/FY24 - Highly automated and energy efficient equipment « Anticipated to open in the second half of 2024 « Initial capacity to p
Slide 12: Capital Expenditure
2022 Final Results Capital Expenditure £22.4m Investment “We have invested £22.4m in our plants to not only improve productivity and processes within our sites but also to attract and retain employees with enhanced working environments." cai Hinckley Automated sortation a Bourne Upgrade of processin
Slide 13: Sustainability
Sustainability “We are tackling sustainability not because we have to, but because it is the right thing to do.” ak way Change the future.
Slide 14: Sustainability Highlights and 2023 Objectives
2022 Highlights • Significant reduction in our carbon emission intensity rates: - 18% reduction against revenue - 24% reduction against weight processed • Achieved a 10% reduction in water usage intensity rate • Successful completion of our first Employee Diversity Monitoring Survey • Ongoing trials
Slide 15: Slide 15
Slide 16: Operational Performance: Workwear
2022 Final Results Operational Performance JOHNSONS Workwear Revenue (£m) Adjusted EBITDA (£m)'244 Adjusted EBITDA margin (%)!244 Adjusted operating profit (£m)?44 Adjusted operating margin (%)*44 Notes: ‘iL 2. Adjusted operating profit plus depreciation charge for property, plant and equipment, tex
Slide 17: Johnson Service Group PLC
2022 Final Results Service Group PLC
Slide 18: Operational Performance: Hotel, Restaurant & Catering Linen
2022 Final Results Operational Performance JOHNSON Service Group PLC Hotel, Restaurant &Catering Linen JOHNSONS JOHNSONS 0 Hotel Linen _ Hotel Restaurant & Catering Linen e@ Hotel Linen e Regencydabndry: Revenue (£m) 251.1 142.5 e Adjusted EBITDA (£m)'23 63.0 26.2 @ Adjusted EBITDA margin (%)'23 25.
Slide 19: 2022 Final Results
2022 Final Results
Slide 20: Outlook
JOHNSON Service Group PLC OUTLOOK “After considering the current economic environment, including the recent, and possibly further, increases in UK interest rates and the subsequent impact on our cost of borrowing, the Board expects the result for the year to be in line with market expectati .
Slide 21: Revenue Mix 2012 vs 2022: Disposals and Acquisitions
2012 Revenue 2022 Revenue 2012 Revenue 2022 Revenue 21% 22% 35% 53% 26% 65% 78% 100% Textile Services HORECA Drycleaning Workwear Facilities Management Disposals Acquisitions
Slide 22: An Essential Service Provider
An Essential Cost Effective Substitution Service Provider The cost of our Limited alternatives The services we service is generally to our offering in a provide to our not significant to the market that has tight customers are essential customer capacity to their business Sustainable Quality Service
Slide 23: Outlook
2022 Final Results Outlook JOHNSON Service Group PLC « Trading momentum remains encouraging ¢ Confident in medium and long term growth prospects ) ¢ Further mitigating actions to offset cost pressures ongoing ¢ EBITDA margin will continue to improve towards pre-COVID levels over the medium term ¢ £2
Slide 24: Appendices
JOHNSON Service Group PLC Appendices
Slide 25: Appendix: Segmental Analysis
2022 Final Results Appendix 1 . JOHNSON Segmental Analysis Sence Group PIC Adjusted Adjusted EBITDA c EBITDA’ £m En E £m Workwear HORECA Textile Rental Group Costs - (4.8) (4.7) - (4.6) (4.6) Prot se57] a2 1089 Notes: 1. Before amortisation of intangible assets (excluding software amortisation), goo
Slide 26: Appendix: Financial Track Record
2022 Final Results Appendix 2 Financial Track Record Revenue (£m) 3857 2018 2019 2020 2021 2022 Adjusted Operating Profit (£m) 528 46.0 412 2018 2019 2021 2022 19 Adjusted EBITDA (£m) 119.0 1014 1049 2018 2019 2020 2021 2022 JOHNSON Service Group PLC Adjusted Diluted EPS excluding super deduction (p
Slide 27: www.jsg.com
JOHNSON Service Group PLC www.jsg.com