Restore Plc · LSE:RST
Restore — Investor Day (October 2024)
25 slides from Restore's investor day presentation, Oct 24, 2024
Slide 1: Investor site visits to South Kirkby and Markham Vale
Restore Investor site visits to South Kirkby and Markham Vale 24 October 2024
Slide 2: Contents
Contents 1. Overview Charles Skinner 2. Financial context Dan Baker 3. Datashred Natalie Matthews 4. Information Management Nigel Dews 5. Summary Charles Skinner
Slide 3: Overview
Overview
Slide 4: Our business
Our business Restore Restore provides mission critical services that protect and manage valuable data, information and assets. Our records management business is stable, secure, high-margin, and consistently cash generative. Our other businesses are in closely related markets serving a similar custo
Slide 5: Our business
Our business National scale Highly predictable quality income streams The Group has 80 sites e Restore leads the markets it serves. Supporting public across the UK providing and private sectors with critical services, income is national scale with * highly predictable, recurring in nature and genera
Slide 6: Opportunities for growth
Opportunities for growth Restore Records Management Digital (scanning) Technology (IT lifecycle) Datashred Harrow Green (relocations) Index-linked pricing maintains current margin Margin expansion achieved through property consolidation Scope for additional services & projects; and unvended public s
Slide 7: Financial context
Financial context
Slide 8: HY24 results
HY24 results HY24 showed solid revenues with increased operating margin. Revenue (£’m) HY24 _HY23_ Change Records Management 64.0 59.3 8% Digital 23.5 25.8 (9%) Technology 17.0 16.3 4% Datashred 175 18.6 (6%) Harrow Green 174 19.6 (11%) 139.4 139.6 - Operating profit Adjusting operating profit* (£’m
Slide 9: Revitalise businesses through decentralisation
Revitalise businesses through decentralisation Group Right size head office including support functions Active treasury management & leverage reduction Records Link contract pricing to RPI/CPI Information Management Property consolidation Management Digital Integration of Digital into Records Manage
Slide 10: Capital allocation framework
Capital allocation framework Restore Targeted investments, with emphasis on organic growth Pay down debt, decreasing leverage whilst keeping the range 1.5-2x adjusted EBITDA Maintain dividends, increasing relative to our profits albeit at a measured and sustainable rate Limited share purchases, prin
Slide 11: Datashred
Datashred
Slide 12: Datashred on a page
Datashred on a page Number of No of sites Fleet 171 FTE ~300 11 vehicles ESESESESE «’ Over 1,000 TrustPilot reviews Visits per driver per day 2024: 11.4 (2019: Miles per visit 8.4) 2024: 7.46 (2019: 9.34) Serviced Sites Annual Annual visits paper volume ~75% 447K 52,000 tonnes London (Dartford) Sout
Slide 13: Organic growth, Paper strategy, Efficiency, People, ESG
Organic growth Paper strategy Efficiency People ESG
Slide 14: Opportunities for growth
Opportunities for growth Restore Bolt on acquisitions — Opportunities to acquire smaller competitors struggling from recent weakness in paper More than Paper — Enhanced collection offerings QOOQDO®S O88 Paper Hard Drives IT & Media Textiles IT Destruction Dry Mixed Toner Cardboard Products Bulk Shre
Slide 15: Information Management
Information Management
Slide 16: Information Management on a page
Information Management on a page Restore @) @& @) @ ® anne - Over 1,000 TrustPilot reviews Number +50 sites + 6,900 22 million 140 dedicated vehicles of FTE ~ 1,400 nationwide customers boxes —1 = Storage revenue Services revenue ~~ ~55% ~45% 1million mail ane items processed each 238 million 650 mi
Slide 17: Information Management — property consolidation
Information Management — property consolidation * Current profile + 50 physical storage sites * 2 digital/physical sites * 3 digital only sites (this includes DWP, Kidderminster) * Future profile * Approximately 35 physical storage sites (current estimate) * 2 digital/physical sites * 3 digital only
Slide 18: Information Management — why integrate?
Information Management — why integrate? Restore What our customers are telling us * Hybrid approach * Secure physical storage with the convenience and efficiency of digital access * One supplier for both physical and digital Why now? * It's what our customers want * Stay ahead of our competitors * N
Slide 19: Information Management — integration progress
Information Management — integration progress * Site consolidation so far 1. Hanworth Redditch Stockport Manchester (part) Redhill Paddock Wood Bolton Middlesbrough ONAWRADY * Bulk scanning and mailroom activities consolidated across four sites, to help improve utilisation and productivity to drive
Slide 20: Opportunities for growth
Opportunities for growth Records * Index-linked pricing maintains current margin Management Margin expansion achieved through property consolidation * Scope for additional services & projects; and unvended public sector * Bolt-on acquisitions Digital services — + Integration will deliver £3m of annu
Slide 21: Summary
Summary
Slide 22: Summary
Summary Restore * Our current primary focus remains on improving operating margins, with a view to the Group targeting 20% adjusted operating margins in the medium term * In our discussion today we have set out some of our levers to achieve this, and our visits today are intended to bring those to l
Slide 23: Appendix
Appendix
Slide 24: FY23 revenues
FY23 revenues Restore Digital & Secure Information .Zo74 Lifecycle Management Services Revenue Digital & Information Management Secure Lifecycle Services Records Management Digital Technology Datashred Harrow Green Storage Income Boxes, online hosting and pallets v v v : ‘Multi-year service outsourc
Slide 25: Glossary
Glossary Term Definition & calculation Adjusted operating profit Calculated as statutory adjusted operating profit before adjusting items. Net operating profit after tax ("NOPAT") Calculated as adjusted operating profit with a standard tax charge applied. APM used for calculation of cash conversion.