Rentokil Initial Plc · LSE:RTO
Rentokil Initial — Merger or Acquisition (December 2016)
11 slides from Rentokil Initial's merger presentation, Dec 16, 2016
Slide 1: Joint Venture with Haniel: Delivering Shareholder Value
JOINT VENTURE WITH HANIEL Delivering Shareholder Value Andy Ransom Jeremy Townsend Chief Executive Chief Financial Officer 16 December 2016
Slide 2: Joint Venture Executive Summary
Joint Venture Executive Summary Today we have announced an agreement with Haniel (parent company of CWS-boco) to create a joint venture which will be a leader in the European Workwear and Hygiene market. A value-creating agreement • Valuation of Rentokil Initial’s business transferring into the join
Slide 3: Joint Venture Rationale
Joint Venture Rationale A further step in transforming the Rentokil Initial business with greater focus on growth markets. • Rentokil Initial receives a c.18% stake in a leading Workwear & Hygiene business in Europe: • Significant value creation potential from growing the top line and synergies. • R
Slide 4: Other Key Aspects of the Transaction
Joint Venture Other Key Aspects of the Transaction • All Rentokil Initial and Haniel Workwear and Hygiene businesses in relevant countries come together under the JV. • In continental Europe, the Company will retain its Pest Control, Plants, Specialist Hygiene, Premium Scenting, Medical, Dental and
Slide 5: Key Financials – Joint Venture
Joint Venture Key Financials – Joint Venture • The new joint venture will have combined pro forma revenues of c. €1.1bn and APBITA of c. €130m (12 months to 30 June 2016). • The Rentokil Initial and CWS-boco businesses have complementary operations, products and capabilities providing the potential
Slide 6: Pro Forma Impact on EPS
Joint Venture Pro Forma Impact on EPS (based on 12 months to 30 June 2016 figures) Rentokil Transferred Pro forma Pro forma Total £’m Initial Businesses adjustments share of JV pro forma Revenue 1,849 (238) - - 1,611 Organic revenue growth 2.1% 2.4% Adjusted profit 236 (38) 5 - 203 Interest (37) - 7
Slide 7: Key Financials - Balance Sheet
Joint Venture Key Financials - Balance Sheet The estimated profit on the transfer of businesses into the JV is expected to be c. €540m based on the estimated net € million assets of €265m. Estimated proceeds: One-off costs (including deal costs) are estimated to be - Cash consideration 520 in the re
Slide 8: Strategy into Action
Strategy into Action c. 80% of Group Revenues From Pest Control and Hygiene In line with strategy Capital allocation model working well. Pro forma impacts on the group post completion: - 70%+ revenues from Growth and Emerging markets (36% in 2013). - C. 60% revenues from Pest Control (60%+ profits).
Slide 9: Summary: Delivering Value for Shareholders
Summary Delivering Value for Shareholders Valuation of Rentokil Initial’s businesses transferring into the JV reflects good value at a multiple of 15.2 times APBITA (12 months to 30 June 2016). Strengthens Company balance sheet - €520m in cash, reducing debt and interest costs. Releases capital to b
Slide 10: Rentokil Initial
Rentokil Initial ting People. Enhancing Live
Slide 11: Combination of Workwear & Hygiene businesses
Joint Venture Combination of Workwear & Hygiene businesses Rentokil Initial Haniel (CWS-boco) Contributes 10 businesses: Contributes 17 businesses: Belgium Belgium Bulgaria Netherlands Netherlands Croatia Luxembourg Luxembourg Hungary Germany Germany Romania Austria Austria Slovenia Switzerland Swit
Rentokil Initial — Merger or Acquisition (December 2016) on 6ix