Slide 1: 2024 Annual Results Presentation
B FRANCHISE BRANDS. ;RANDS Thinking Bigger, Working Smartly 2024 Annual Results Presentation
Slide 2: Disclaimer
Disclaimer The information contained in this document (“Presentation”) and the presentation made to you verbally has been prepared by Franchise Brands ple (the “Company”, Franchise Brands plc is a UK company quoted on AIM, a market operated by London Stock Exchange ple. This Presentation has not bee
Slide 3: Presenters
Presenters Stephen Hemsley Executive Chairman, Franchise Brands ple Stephen co-founded Franchise Brands with Nigel Wray in 2008 and has led the development of the business, including the IPO and external growth. He is a Chartered Accountant by training and spent nearly ten years at 3i as an Investme
Slide 4: Introduction to Franchise Brands / 2024 results summary
Introduction to Franchise Brands Water & Waste Services 2024 results summary Filta International Franchise Brands: at a glance B2C division Financial and Financial review operational highlights At a glance: 2024 Summary and outlook Pirtek Appendix
Slide 5: Introduction and overview
Introduction and overview Stephen Hemsley Executive Chairman
Slide 6: Our purpose: "As they grow, we grow"
Our purpose: “As they grow, we grow” We are focused on acquiring, developing and growing organically market-leading franchise businesses. Build We build market-leading franchise businesses primarily via a franchise model. Develop We support our franchisees to successfully develop their businesses an
Slide 7: Resilient performance in a challenging market
Resilient performance in a challenging market — 2024 saw resilient underlying demand for the Group's essential reactive and planned services, resulting in record system sales in all key divisions in challenging macroeconomic conditions in most key markets. — System sales were particularly strong in
Slide 8: Two key developments in management and corporate governance
Two key developments in management and corporate governance O1. Separation of responsibilities of Executive Chairman and CEO roles: Executive Chairman: strategic and corporate development of the Group, including finance and future acquisitions. CEO: day-to-day leadership of the Group across its four
Slide 9: Introduction
Introduction My background, experience and track record S — with the Group New CEO role: key actions since appointment: Q& — One Franchise Brands — Management Board PO) Realising our significant potential — our principal by brands have small shares of large markets 7) Delivering for our key stakehol
Slide 10: Operational Review
a a h& yb 7 a Operational Review Peter Molloy CEO
Slide 11: Overview of Franchise Brands plc
Overview of Franchise Brands plc @® Q Tam 54 Who we are How we grow d ystem sales of c£420m and ocused on b e Maximum Potential Model Plumb provide essential d d EBITDA of £35.4m. S a us to estimate total services on a mostly addressable marke i Leverage shared services across the Group to enhance F
Slide 12: Financial & operational highlights
Financial & operational highlights — Resilient underlying demand for the Group’s essential reactive £41 8 . 5 m 8. 59 p and planned services resulted in record System sales in all System sales Adjusted earnings per share key divisions despite challenging macro economic conditions +20% 2023: £350.1m
Slide 13: At a glance: 2024
North America Ata glance: 2024 Proportion of Adjusted EBITDA? before Group overheads of £4.2m by geography! UK Europe Our market-leading brands Water & Waste Services SS Pirtek Filta International Leading European provider of on-site hydraulic hose replacement services. Drainage, plumbing, pumps mai
Slide 14: Pirtek 2024 review
Pirtek 2024 review In the major markets of the UK & Ireland, Germany & Austria, and Benelux, the business is mostly franchised. Continued good demand for essential reactive services in most sectors, despite continued subdued demand for project work and discretionary spending. — UK: slowdown in const
Slide 15: Pirtek: Financial results
Pirtek: Financial results Change Change — Sterling results in 2024 for System sales, the Actual Proforma comparative eight months in 2023, and proforma 12 "s a) months results. — Total System sales of £183.6m, an increase of 46% System sales 183,582 125,976 180,168 46% 2% (2023: 8 months: £126.0m) —
Slide 16: Pirtek System sales
Pirtek System sales ad 2023 Change = Change — The underlying local currency like-for-like System Actual Proforma Actual Proforma sales growth posal mies! — 2% in the UK & Ireland and, in local currency, 4% in the Continental European markets. — The UK and Ireland (45% of System sales) achieved UK GB
Slide 17: Metro Rod & Metro Plumb 2024 review
Metro Rod & Metro Plumb 2024 review Overall System sales increased by 4% to £71.4m. Continued expansion of range of services: tankers and pumps. Good growth in higher AOV local sales. Reduced sector dependency and increased share of growth sectors. Driving divisional integration and cross-selling. M
Slide 18: Willow Pumps & Filta UK 2024 review
Willow Pumps & Filta UK 2024 review WILLQW PUMPS Underlying sales of core business grew by 4%. Focus away from high volume, low margin work. £3m of sales delivered by the Metro Rod network to external customers. Special projects division (engaged in larger, longer-term projects) beginning to win wor
Slide 19: Water & Waste Services division: financial results
Water & Waste Services division: financial results System sales Statutory revenue Cost of sales Gross profit GP% Administrative expenses Adjusted EBITDA Adjusted EBITDA/ System sales (%) 110,270 46,054 (19,661) 26,393 57% (15,282) 4,111 10.1% 46,807 (21,247) 25,560 55% (14,690) 10,870 10.2% (753) 1,
Slide 20: Filta International: 2024 review
Filta International: 2024 review North American System sales increased by 8% to £94.4m and in local currency by 12% to $120.9m. Benefited from a supportive macroenvironment and good traction with the FiltaMax strategic growth initiative. Excluding used cooking oil (“UCO”) sales, underlying system sa
Slide 21: Filta International: financial results
Filta International: financial results System sales Statutory revenue Cost of sales Gross profit GP% Administrative expenses Adjusted EBITDA EBITDA/ System sales (%) 2024 £000 9,906 39% (3,913) 5,993 6.1% 2023 £000 90,482 27,117 (17,349) 9,768 36% (3,671) 6,097 6.7% Change £000 7,344 (1,520) 1,658 1
Slide 22: B2C division: 2024 review and financial results
B2C division: 2024 review and financial results ChipsAway ovenclean &2s LUKE IT NEVER HAPPENED — eee enime, WORE THE — Barking Mad — Franchise recruitment environment continued to be challenging. — 24 new franchisees were recruited (2023: 41) ), and 53 franchisees left the system (2023: 63), resulti
Slide 23: "One Franchise Brands"
“One Franchise Brands” A truly connected group operating under shared values and common systems and platforms, deployed locally.” @) Enhancing sales Opportunities to work smartly Share best practice, learn from each other, leverage shared services and specialist expertise. Leverage customer relation
Slide 24: Financial Review
Financial Review Andrew Mallows CFO
Slide 25: Summary of group results
Summary of group results 2024 2023 Change Change ; restated" ; — System sales, which comprise the underlying sales of our £000 £000 £000 % franchisees and the statutory revenue of our DLOs, increased 418,458 350,053 68,405 20% by 20% to £418.5m (2023: £350.1m). — Statutory revenue increased by 15% t
Slide 26: Adjusted and statutory profit
Adjusted and statutory profit — The increase in the amortisation of acquired intangibles to £10.2m reflects the full 12-month impact of the Pirtek acquisition and the final valuation of these Adjusted profit after tax 16,542 14,528 2,014 14% assets. — The increase in the share-based payment expense
Slide 27: Adjusted EPS and dividend (p)
Adjusted EPS and dividend (p) — Adjusted EPS increased 2% to 8.59p (2023: 8.39p). 2024 2.40 8.59 — Final dividend of 1.30 per share proposed (2023: 1.20p), an increase of 8%, giving an increase in the total dividend for the year of 9% to 2.40p per share (2023: 2.20p). 2023 2.20 8.39
Slide 28: Cash flow summary
Cash flow summary Shortform cashflow 2024 Restated Adjusted EBITDA 35,121 30,153 Non-recurring costs (444) (6.159) Working capital movements (577) 2 Adjusted cash generated from operations 33,100 23,996 Taxes paid (3.991) (4,498) Purchases of property, plant and equipment (net of proceeds) (1.231) (
Slide 29: Debt
Debt 31 December 31 December 2024 2023 £1000 Cash 12,921 12,278 643 During the year, the term loan balance was reduced by £10m (2023: £5m). Term loan (40,000) (50,000) 10,000 Adjusted net debt, as used to test the bank covenants, reduced to £65.1m (2023: £74.8m), and leverage from 2.5x to 1.9x. RCF
Slide 30: Summary and Outlook
2 ~ =| yt ‘ t eI Summary and Outlook Stephen Hemsley Executive Chairman 3 FRANCHISE BRANDS
Slide 31: Capital allocation
Capital allocation capital allocation priorities The Group’s clear strategic focus is to accelerate the pace of integration, drive operational gearing and deleverage. Board does not expect to make any further significant acquisitions until the outstanding debt is substantially repaid. Capital alloca
Slide 32: Summary and Outlook
Summary and Outlook Key divisions achieved record System sales in all key divisions and a creditable Adjusted EBITDA outturn for the year, despite ongoing challenging macroeconomic conditions in key markets. With a resilient and geographically diversified base, we are well positioned to manage and m
Slide 33: Appendix
Fa _ cw. A a) Ie ( Spas = H Pi, P| j al Crd - = FRANCHISE = BRANDS Appendix 24/7 Hydraulic Service www.pirtek.co.uk 0800 38 24 38
Slide 34: Divisional trading results
Divisional trading results ‘System sales Statutory revenue Cost of sales Gross profit GP% Administrative expenses Divisional EBITDA Group overheads Adjusted EBITDA System sales/ Adjusted EBITDA Inter-co Filta Intl elimination (21978) 19,925 110,270 46,054 (19,661) 26,393 57% (15,282) 11,111 97,826 2
Slide 35: Pirtek: at a glance
Pirtek: at a glance System sales Franchisees Centres Mobile Service Units UK& Germany Ireland & Austria £82m SS) 86 SEB £67m 22 98 363 Belgium & Netherlands £24m 11 France £8m Sweden £3m TOTAL £184m 72 PIRTEK Market-leading European provider of hose replacement services. 94% of system sales from fra
Slide 36: Pirtek's range of services
Pirtek’s range of services Reactive Services — Emergency on-site hydraulic repair and — Preventive Maintenance — Ram Repairs releasing — Reducing total cost of operation — Hose flushing, testing, fluid analysis. ~ BIA iinteuy, restating unseinselU tse) eon — New customer base & evolution from — Syst
Slide 37: Pirtek
Pirtek Pirtek Europe Franchised Franchised £000 £1000 System sales 165,712 17,870 183,582 118,687 7,289 125,976 57,606 46% Statutory revenue 46,487 417,870 (444) 63,913 36,598 7,292 (116) 43,774 20,139 46% Cost of sales (12,436) (9,974) 400 (22,010) (12,102) 4188 16 (16,174) (5,836) 36% Gross profit
Slide 38: Pirtek Adjusted EBITDA
Pirtek Adjusted EBITDA Adjusted EBITDA 2024 2023 2023 . . £ Actua Actual Proforma — Overall, Adjusted EBITDA increased by aa ahs anh 48% to £19.9m (2023: £13.5m) and 8% ona UK 10,098 6,872 9,678 47% 4% like-for-like basis. Germany & Austria 6,212 4271 6,048, 45% 3% . . + — Asatisfactory performance
Slide 39: Water & Waste Services: at a glance
Water & Waste Services: at a glance METRO METRQ PLUMB filta Drain Clearance Emergency Plumbing — FOG Management, including Rane Gas Boiler Senices installations, Servicing & Repair Tanker Services Commercial Plumbing oy a cei UE NSIS Wastewater Pumps Legionella Rectification Ps See ey cpr Asset Mapp
Slide 40: Filta International: at a glance
Filta International: at a glance filta Oil removed from fryer into mobile filtration unit (“MFU”) — Total of 550 MFUs Oil micro filtered to remove impurities Fryer cleaned and clean oil returned to fryer Customers serviced per week > 9,000 % System sales 62% Oil services filta Oil removed from fryer
Slide 41: Used cooking oil
Used cooking oil Volume t15% 2024 Price 423% 2024 Revenue 411% 2024 Note: 2024E figures $60m $50m $40m $30m $20m ‘are Company estimates, unaudited. $0.47 45m Ibs $21.4m 2023 mam System Sales ($m) $3.7m mms Our royalty $19.0 ——Volume (Lbs) 52m Ibs $0.36 $3.0m 2024 —Avg Price achieved $ per lb $0.50 $
Slide 42: My management team
My management team aie ia hh L. SS. Andrew Mallows CFO, 8 years with the Group Mark Boxall COO, 7 months with the Group Julia Choudhury Corporate Development Director, 16 years with the Group Rob Bellhouse Company Secretary, 9 years with the Group Beth Peace Group Finance Director, 8 years with the
Slide 43: Franchise Brands contact details
FRANCHISE BRANDS www.franchisebrands.co.uk Franchise Brands plc Ashwood Court Tytherington Business Park Macclesfield SK10 2XF mail@franchisebrands.co.uk 01625 507910 www.pirtek.eu METR@ ROD www.metrorod.co.uk METRO PLUMB www.metrorod.co.uk N. WILLOW PUMPS www.willowpumps.co.uk Ze filta www.filta.co