Slide 1: 2022 Full Year Results: Growth & Resilience
2022 Full Year Results Growth & Resilience
Slide 2: Highlights
Highlights Restore has delivered a further year of strong growth in 2022. Revenue and profit performances demonstrating the resilience of the business during a challenging year. +19.1% +9.8% +7.6% +1.3% -0.1x +4.7% £279.0m £81.5m £41.0m £23.3m 1.7x 24.3p Revenue Adjusted Adjusted Statutory Leverage*
Slide 3: Highlights
Highlights Strong organic and acquisitive growth despite challenging macroeconomic conditions, demonstrating resilient nature of the business and excellent service delivery Business and Strategic Highlights Financial Highlights O Records Management box growth of 1.6% (2021: 1.3%) O Revenue increased
Slide 4: Growth strategy is delivering
Growth strategy is delivering Strategic Growth Targets Revenue Growth (£’m) 2018 2019 2020 2021 2022 Medium term goal 450+ Sustained revenue £195.5m £215.6m £182.7m £234.3m £279.0m c.£450m - £500m expansion Profitable organic growth +3.0% +3.1% +1.4% +5.0% +11.0% 4-8+% 321.0 307.0 Growth 279.0 Attra
Slide 5: Financial Overview
Financial Overview Restore has delivered strong growth in challenging conditions, demonstrating the resilient nature of the business 2022 Full Year Results 5
Slide 6: Consolidated Income Statement: Strong growth in challenging conditions
Consolidated Income Statement: Strong growth in challenging conditions Income Statement Summary 2022 2021 Change Group Adjusted Profit Bridge (£’m) Revenue (£’m) 279.0 234.3 +19.1% 4.9 0.1 0.3 41.0 38.1 Adjusted EBITDA (£’m)* 81.5 74.2 +9.8% (2.4) Adjusted profit before tax (£’m)* 41.0 38.1 +7.6% St
Slide 7: Organic and Acquisition Revenue Growth
Organic and Acquisition Revenue Growth: Strong organic performance and returns from strategic acquisitions Revenue growth of £44.7m O Strong organic revenue growth of £25.8m (+11%): 300 £7.7m £7.2m £279.0m • Net box growth of 1.6% in Records Management with major £17.6m £12.3m (£0.1m) contract wins
Slide 8: Divisions – Digital and Information Management
Divisions – Digital and Information Management: Successful integration of EDM and strong organic performance Revenue 2022 2021 Change Revenue mix 2022 Records Management (£’m) 113.7 101.4 +12% Digital (£’m) 54.5 36.9 +48% 32% Digital 168.2 138.3 +22% Margin £168.2m Operating Margin (£’m) 47.4 42.5 +
Slide 9: Divisions – Secure Lifecycle Services
Divisions – Secure Lifecycle Services: High growth of data erasure services Revenue 2022 2021 Change Revenue mix 2022 Technology (£’m) 35.8 28.1 +27% Datashred (£’m) 37.4 30.2 +24% 34% 34% Datashred Harrow Harrow Green (£’m) 37.6 37.7 0% Green 110.8 96.0 +15% £110.8m Margin 32% Operating Margin (£’m
Slide 10: Continued strong cash generation funding acquisition investment
Continued strong cash generation funding acquisition investment 2022 2021 Cashflow £’m £’m Adjusted EBITDA 81.5 74.2 O A further year of strong free cash generation Working capital movements (12.6) (12.1) O Working capital of £12.6m (2021: £12.1m) to support Other movements (3.7) (2.2) business expa
Slide 11: Acquisition investment: Successful integration and strong returns
Acquisition investment: Successful integration and strong returns In year acquisitions: Post Tax ROIC 24.7% 24.1% O 5 acquisitions completed in 2022 for total consideration net of cash 22.9% 22.7% of £12.3m, delivering annualised revenues of c.£10m • Ultratec acquisition for £9.0m net of cash in Tec
Slide 12: Balance Sheet, Net Debt and Interest
Balance Sheet, Net Debt and Interest: Strong foundations and leverage in line with expectations 2022 2021 O Strong balance sheet maintained with closing net debt of £103.5m (2021: Balance Sheet £’m £’m £100.8m) and leverage reduced to 1.7x in line with target range of 1.5x to Non-current assets 513.
Slide 13: Adjusting items
Adjusting items 2022 2021 O Amortisation increased to £12.1m primarily due to prior year acquisition £’m £’m related activity and the subsequent capitalisation and amortisation of Amortisation 12.1 10.7 value ascribed to customer contracts Acquisition related transaction/advisory costs 1.4 1.2 O £2.
Slide 14: Inflation: Cost increases offset by price increases
Inflation: Cost increases offset by price increases Cost and Price Increases 2022 Cost base 2022 2023 £42.4m Other costs People £14.6m Property-Lease Fleet (Incl. Fuel) £223.1m £127.2m People Rates £38.9m (Staff + Agency) Property (Incl. Lease + Fuel Rates) Energy O Inflation as a whole to increase,
Slide 15: Price increases: Highly contracted revenues with pricing mechanisms built in
Price increases: Highly contracted revenues with pricing mechanisms built in Revenue type Pricing mechanism 12% Ad hoc 30% 36% Priced to the 35% 17% Recurring market CPI/RPI Linked Long term contract 35% 35% Fixed rental Negotiated (long term contracted, fixed rental & recurring) O Critical demand c
Slide 16: Business Overview
Business Overview Strong financial results and momentum for growth in 2023 2022 Full Year Results 16
Slide 17: Positive global market forces driving our growth
Positive global market forces driving our growth Digital & Information Management Secure Lifecycle Services No.2 No.1 No.1 No.2 No.1 Growth trends Growth trends Secure storage Secure data destruction and recycling Flexible working demands Workplace transformation Digitisation Rising technology lifec
Slide 18: Significant opportunity to grow with organic and acquisition growth
Significant opportunity to grow with organic and acquisition growth Growing from £280m to £450m+ revenues has many pathways Organic Growth Business units with market leading growth rates Market Growth Our Target O Organic Growth at c.6% can deliver Records Management c.1-2% 3-5% c.£100m+ in revenues
Slide 19: Medium Term Growth Scenario
Medium Term Growth Scenario Current Revenue £279.0m Growth Potential Organic Growth Acquisition Growth £113.7m High £54.5m High £35.8m High £37.4m Medium £37.6m Medium 2022 Full Year Results 19
Slide 20: Restore Records Management
Restore Records Management FY 2022 Results Growth Strategy O £113.7m revenue, +12% YoY (+9% organic, +3% Organic acquisition) O 3-5% organic revenue growth with 1-2% O Storage revenue growth up 8% and service organic box growth growth 21% O Leveraging strong relationships across both O 1.6% organic
Slide 21: Restore Digital
Restore Digital FY 2022 Results Growth Strategy O £54.5m revenue, +48% YoY (+25% organic, Organic +23% acquisition) O Physical to Digital consulting & services O Continued transformation for Digital following O Digital mailroom capability & expertise the successful integration of EDM O Compelling pr
Slide 22: Restore Technology
Restore Technology FY 2022 Results Growth Strategy O UK’s largest and market leading IT Lifecycle Organic services business O Continue to outpace a fast-growing market O Growth through existing and new clients, enterprise O £35.8m revenue, +27% YoY (+5% organic, and commercial and public sector +22%
Slide 23: Restore Datashred
Restore Datashred FY 2022 Results Growth Strategy O £37.4m revenue, +24% YoY (+22% organic, Organic +2% acquisition) O Reactivate customer base and win new customers O 19% increase in service visits, 11% increase in paper tonnage collected and strong paper prices O Focus on automation and enhanced c
Slide 24: Restore Harrow Green
Restore Harrow Green FY 2022 Results Growth Strategy O £37.6m revenue, flat YoY (-1% organic, +1% Organic acquisition) O Maintain market leadership and grow share through strong commercial relocation offering O Stable year despite loss of Ministry of Defence relocation contract ending in Q1 (underly
Slide 25: Outlook
Outlook O Looking ahead we see strong demand for our essential services which saves customers money, which is the major focus of our customers given the weak economic backdrop in the UK in the short term. The market forces over the last 20-40 years have been positive for the markets we serve, and we
Slide 26: For more information please visit www.restoreplc.com
For more information please visit: www.restoreplc.com Please see these short videos below: 7-10 Chandos Street London, W1G 9DQ T: 020 7409 2420 E: info@restoreplc.com W: www.restoreplc.com
Slide 27: Appendix
Appendix 2022 Full Year Results 27
Slide 28: Leading positions in large, growing and fragmented markets
Leading positions in large, growing and fragmented markets with a strategy to deliver significant growth £2.0b market and growing Market Position No.2 No.1 No.1 No.2 No.1 Market Size £490m-£500m £330m-£335m £580m £200-210m £350m £2.0b Market Growth c.1-2% c.4% c.5-6% c.0-1% c.1% c.3% Market Share 22
Slide 29: Strategic acquisitions delivering strong returns and value enhancement
Strategic acquisitions delivering strong returns and value enhancement Strong M&A platform …with strong returns Highly qualified and dedicated M&A team 24.7% 24.1% 22.9% 22.7% Significant cash flows to deploy 18.2% Large and fragmented market 16.6% All acquisitions EPS accretive 10.0% Mana
Slide 30: Significant acquisition growth to scale and acquire new capabilities
Significant acquisition growth to scale and acquire new capabilities Strategy Market Structure 2022 Delivery Highly addressable 5 acquisitions acquisition opportunity of £12.3m deployed £800M+ Fragmented Highly Fragmented Extremely Fragmented Highly Fragmented Fragmented Others Restore Restore Resto
Slide 31: We are making good progress on our ESG strategy
We are making good progress on our ESG strategy “Restoring our World” Our Planet Our People Our Business Progress on Key Outcomes Progress on Key Outcomes Progress on Key Outcomes 32% 63% 9% 33% 100% Completed inaugural CDP submission in July 2022 reduction in Scope 1&2 of company cars and 3% of imp
Slide 32: Divisions – Appendix
Divisions – Appendix Digital and Information Management Secure Lifecycle Services Revenue 2022 2021 2020 Revenue 2022 2021 2020 Records Management (£’m) 113.7 101.4 87.6 Technology (£’m) 35.8 28.1 15.3 Digital (£’m) 54.5 36.9 18.5 Datashred (£’m) 37.4 30.2 28.0 168.2 138.3 106.1 Harrow Green (£’m) 3
Slide 33: Glossary - Definitions
Glossary - Definitions Term Definition & calculation Adjusted profit before tax Calculated as statutory profit before tax stated before adjusting items (‘Adjusted PBT’) Adjusted basic earnings per Calculated as adjusted profit before tax with a standard tax rate (19%) applied, divided by the weighte