Abm Industries Incorporated · NYSE:ABM
Abm Industries — Investor Presentation (January 2008)
22 slides from Abm Industries's investor presentation, Jan 31, 2008
Slide 1: ABM Industries Incorporated Investor Meeting, New York City
Slide 2: Forward-looking statements
Our presentation today contains predictions, estimates and other forward-looking statements. Our use of the words estimate, expect, and similar expressions is intended to identify these statements. These statements represent our current judgment on what the future holds. While we believe them to be
Slide 3: Introduction and presenters
Introduction: Janitorial Segment Overview: Platform for Growth: CEO Perspective: Management Q&A: David L. Farwell Senior Vice President James P. McClure Executive Vice President, President — ABM Janitorial Services James S. Lusk Executive Vice President Chief Financial Officer Henrik C. Slipsager Pr
Slide 4: NYSE Symbol: ABM
NYSE Symbol: ABM ABM provides janitorial, parking, engineering, security, lighting services and landscaping for thousands of commercial, industrial, institutional and retail facilities in hundreds of cities across the U.S., Puerto Rico and British Columbia, Canada Market Capitalization of approximat
Slide 5: Emphasis on market leadership
ioni —) is on market leadership » Emphas « Focused on most profitable sectors = Moderately leveraged, with capacity for additional acquisitions «New management team « Since 2001: ¢ Poised for accelerated growth * 8 business segments Acquired and integrated — Integration of OneSource Janitorial / Fac
Slide 6: Janitorial Segment Overview
Janitorial Segment Overview James P. McClure Executive Vice President, President — ABM Janitorial Services
Slide 7: Janitorial revenue and operating profit
2004 $1,526.6 2005 2006 2007 2004 2005 2006 2007 ©" Operating Profit -e— Margin
Slide 8: OneSource
OneSource Acqui ed in November 2007 for approx. $365MM « Provides commercial cleaning and landscaping services « Operates in 45 states & Puerto Rico. Employs over 30,000 individuals « Anticipating approx. $45MM cost savings of which $28MM is in FY2008 « Revenue run rate in excess of $850MM $1,000 -
Slide 9: ates unmat
re ates unmat vides sia 2005 2006 2008 Est. $20 5 2005 2006 2007 2008 Est.
Slide 10: OneSource integration synergies phases
Phase | (Q1 FY08 — Q2 FY09) « Reduction of personnel in operations, corporate, and other SG &A « Total cost saving synergies of approx. $40MM STATUS: Operating profit better than anticipated. Personnel evaluations completed. Reduction of staffing on schedule. Very pleased with progress and professio
Slide 11: ABM Janitorial national platform for $12 billion market
1] os | ois 7 - the only truly national ity bk io : bi ioe al es ee ABM Janitorial combined with OneSource has platform to serve a $12 billion market segment — Approximately 4X larger in terms of revenue than nearest competitor Broader capabilities to service owner-operated facilities — High-tech Ph
Slide 12: Platform for Growth
Platform for Growth Jim Lusk Executive Vice President & Chief Financial Officer
Slide 13: Platform for Growth: Project Transform
Platform for Growth . *Consolidate 17 accounting centers «Adopt best-in-breed processes *Create a scalable | platform to support | growth Tee RR Migrate critical financials to a supported | platform | *Move UNIX Payroll to a | supported platform & | automate benefits TRANSFORM $ . . E Address integr
Slide 14: OneSource Integration phases
OneSource Integration Phase 1 Phase 2 Phase 3 Initial Move $ Interim Move Final Move
Slide 15: Shared Services Center and corporate relocation
» Shared Services Center Consolidation of certain back-office functions in Houston Create a scalable platform to support growth * Corporate Relocation Relocation of executive headquarters from San Francisco to NYC Relocation of ABM Janitorial headquarters to Houston from San Francisco «= New Enterpr
Slide 16: CEO Perspective
CEO Perspective Henrik C. Slipsager President & Chief Executive Officer
Slide 17: Global facility services market trends
from International companies and private equity - Janitorial - Security - Parking - Catering >» Eventually US market evolving into European model Global facility services market growing as Asia and others continue to experience economic expansion Existing large customers established outside U.S. and
Slide 18: Goal: $5B in sales and 5% EBITDA margin by 2010
. sas Babe ve ps ioe Oi a 2 ee os = 7 ; =. Goal: $5B in sales and 5% EBITDA marg in run rate by 2010 = Objective: Build a significant portfolio of leading services that can compete in a global facilities environment » Added OneSource to augment prior accomplishments and to: Y Solidify position as US
Slide 19: Goal: $5B in sales and 5% EBITDA margin by 2010
A ee = eat ; see _ s wi boas bs = ee eh. “Sra jal P ee ncot na = Te a aia ae S ee ee ee te , ts a 2 Goal: $5B in sales and 5% EBITDA margin run rate by 2010 " Objective: Build a significant portfolio of leading services that can compete in a global facilities environment v OneSource as previously co
Slide 20: Goal: $5B in sales and 5% EBITDA margin by 2010
‘ 5 ee : A a a Z . atat ~- - S as ‘4 j ‘; ~ ~<A j " seme Me 8 is ~ — « : $5B in sales and 5% EBITDA margin run rate by 2010 = Objective: Build a significant portfolio of leading services that can compete in a global facilities environment » Domestically will continue following proven strategies of:
Slide 21: Fiscal 2009 improvements and risks
OneSource margins appear to be ¢ Legal matters better than anticipated * — Significant and a sustained Achievement of synergies remains downturn in US Economy favorable Interest (Borrowing) rate improving Fewer OneSource customer losses than initially anticipated Improvements for Fiscal 2009 OneSour
Slide 22: Thank You
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