Slide 1: 2022 Half Year Results
2022 Half Year Results Strategy Delivering Growth.
Slide 2: Highlights – Strategy delivering organic momentum and acquisition expansion
Highlights – Strategy delivering organic momentum and acquisition expansion Highlights O Strong business momentum and organic expansion resulting from high customer satisfaction and innovation • Increasing demand and activity expansion continuing from 2021 • Major contract wins in Digital and Inform
Slide 3: Delivering the growth strategy
Delivering the growth strategy Digital & Information Management Secure Lifecycle Services Strategy O Growing through organic expansion, strategic acquisition and margin enhancement through productivity and scale Market Position No.2 No.1 No.1 No.2 No.1 O Leading provider of; Partial Consolidation Hi
Slide 4: Financial Overview
Financial Overview Strategic investment and strong organic momentum delivering fast growth 2022 Half Year Results 4
Slide 5: Consolidated Income Statement: Continued strong momentum and increase in scale
Consolidated Income Statement: Continued strong momentum and increase in scale Income Statement Summary H1 2022 H1 2021 Change Group Revenue Momentum (£’m) Revenue (£’m) 140.3 106.1 +32% 140.3 128.2 Adjusted PBT (£’m)* 21.2 15.6 +36% 106.2 109.4 106.1 Statutory PBT (£’m) 14.1 8.9 +58% 89.5 93.2 EBIT
Slide 6: Organic and Acquisition Growth: Strong organic performance and returns from strategic acquisitions
Organic and Acquisition Growth: Strong organic performance and returns from strategic acquisitions Organic and Acquisition Revenue Growth H1 2021 to H1 2022 O Strong organic revenue growth of £20.1m (+19%) Organic Acquisition • Major Digital contract wins and business expansion in Records Management
Slide 7: Substantial pricing flexibility and margin management
Substantial pricing flexibility and margin management Cost structure Flexibility Significant element of cost is determined by management decision (subject to Large variety of contract types and most include CPI or annual increase mechanisms. market conditions (i.e. staff, property)) with exposure to
Slide 8: Divisions – Digital and Information Management
Divisions – Digital and Information Management: Successful integration of EDM acquisition and strong organic performance Revenue H1 2022 H1 2021 Change Revenue mix H1 2022 Restore Records Management (£’m) 55.9 47.7 +17% Restore Digital (£’m) 31.2 14.2 +120% 36% Restore Digital 87.1 61.9 +41% Margin
Slide 9: Divisions – Secure Lifecycle Services
Divisions – Secure Lifecycle Services: Technology expansion and increasing Datashred activity Revenue H1 2022 H1 2021 Change Revenue mix H1 2022 Restore Technology (£’m) 17.2 12.3 +40% Restore Datashred (£’m) 18.3 13.8 +33% 33% 32% Restore Harrow Restore Technology Restore Harrow Green (£’m) 17.7 18
Slide 10: Strong quality of earnings with low level of adjusted profit items
Strong quality of earnings with low level of adjusted profit items £’m H1 2022 H1 2021 Exceptional items 0.9 1.7 O Management provide an adjusted profit measure to better reflect what they believe to be a truer picture of Exceptional finance costs 0.3 - the underlying earnings of the Group. These it
Slide 11: Continued strong cash generation funding acquisition investment
Continued strong cash generation funding acquisition investment H1 2022 H1 2021 Cashflow £’m £’m Change O Continued high levels of cash generation EBITDA 40.3 33.2 +21% Exceptionals (excluding finance costs) (0.9) (1.7) (47%) O As prior year, increase in working capital Share based payments 1.8 0.9
Slide 12: Balance Sheet: Strong foundations and capacity for further investment
Balance Sheet: Strong foundations and capacity for further investment H1 2022 H1 2021 Balance Sheet £’m £’m Non-current assets 507.9 504.2 O Strong balance sheet and key ratios remain Trade and other current assets 74.9 56.3 consistent with prior periods Cash and cash equivalents 29.9 22.0 O Net deb
Slide 13: FY22 Outlook Summary
FY22 Outlook Summary O Customer demand and activity levels are strong and are expected to remain so in H2 although Restore Digital will not benefit from the same level of major contract work in H2 O Inflationary increases will continue to be mitigated through price and productivity measures O Intere
Slide 14: Business Overview
Business Overview Delivering substantial growth 2022 Half Year Results 14
Slide 15: Delivering essential and growing services in a challenging macro economic market
Delivering essential and growing services in a challenging macro economic market Restore delivers essential services which customers need more of and we save them money in the process. Which means Restore can grow in both expansionary and recessionary environments. Digital & Information Management S
Slide 16: Restore Records Management: Organic momentum continues
Restore Records Management: Organic momentum continues H1 2022 Results Growth Strategy O £55.9m revenue, +17% YoY (11% organic, 6% Organic acquisition) O Positive outlook on net box growth for FY22 in line with guidance of 1-2% net box growth O Organic net box growth marginally up YoY with c.22m box
Slide 17: Restore Digital: Transformative year and expansion
Restore Digital: Transformative year and expansion H1 2022 Results Growth Strategy O Revenue £31.2m, up 120% vs H1 21 Organic (organic +65%, acquisition +55%) O Physical to digital consulting & services O Successful integration of EDM and Capture O Digital mailroom capability & expertise All acquisi
Slide 18: Restore Technology: Expanding scale and capabilities
Restore Technology: Expanding scale and capabilities H1 2022 Results Growth Strategy O £17.2m revenue, +40% YoY (14% organic, 26% Organic acquisition) O Growth through existing and new clients, enterprise and SME, commercial and public sector O Successful acquisition of highly regarded hard disk ser
Slide 19: Restore Datashred: Returning to business as normal
Restore Datashred: Returning to business as normal H1 2022 Results Growth Strategy O £18.3m Revenue, +33% YoY Organic O Significant progress made in reactivating O Activity levels increased c.30% YoY, although customer base and driving customer renewals slightly behind Pre Covid-19 levels as expecte
Slide 20: Restore Harrow Green: Reliable performance and growth from new services/markets
Restore Harrow Green: Reliable performance and growth from new services/markets H1 2022 Results Growth Strategy O Revenue £17.7m, down 2% YoY. Decline Organic reflecting the loss of a major relocation O Continued expansion of specialist services & sectors contract for the MoD in Q2 22 O Cross sell G
Slide 21: Medium Term Outlook: Strong platform delivering growth
Medium Term Outlook: Strong platform delivering growth Growth and defensive qualities Track record of execution Consistent results We deliver essential services to We have significant opportunity We have a strong track record our customers in growing markets, to grow organically by continuing of exe
Slide 22: For more information please visit: www.restoreplc.com
For more information please visit: www.restoreplc.com Please see these short videos below: 15/19 Cavendish Place London, W1G 0QE T: 020 7409 2420 E: info@restoreplc.com W: www.restoreplc.com
Slide 23: Appendix
Appendix 2022 Half Year Results 23
Slide 24: Leading positions in large, growing and fragmented markets
Leading positions in large, growing and fragmented markets with a strategy to deliver significant growth £1.9b market and growing Market Position No.2 No.1 No.1 No.2 No.1 Market Size £485m £320m £550m £200-210m £350m £1.9b Market Growth c.1-2% c.4% c.6% c.0-1% c.1% c.3% Market Share 22% 15% 6% 19% 1
Slide 25: Organic Growth – Our Strategy & Objectives are clear with multi year delivery from the team
Organic Growth – Our Strategy & Objectives are clear with multi year delivery from the team Business units with market leading growth rates Driven by a disciplined sales strategy Market Growth Our Target Records Management c.1-2% 3-5% Digital c.4% 5-15% 1 2 3 Datashred c.0-1% 1-4% Increase the Then
Slide 26: Strategic acquisitions delivering strong returns and value enhancement
Strategic acquisitions delivering strong returns and value enhancement Scenario 1 below underpins the strategy to double EBITDA to £150m Strategy Market Structure 2021 Delivery Highly addressable 8 acquisitions acquisition opportunity of £86.3m deployed £800M+ Partial Consolidation Highly Fragmented
Slide 27: ESG Strategy: Strong, sustainable values and working practices
ESG Strategy: Strong, sustainable values and working practices Restore has engaged external advisors and sought feedback from stakeholders to develop a new and comprehensive ESG Strategy which is action oriented with measurable KPIs. O Active engagement of fleet provides and commencement Our Strateg
Slide 28: Glossary - Definitions
Glossary - Definitions Term Definition & calculation Adjusted profit before tax Adjusted profit before tax is stated before amortisation of intangible assets, impairments and exceptional items. (‘Adj PBT’) Adjusted EPS Earnings are calculated before amortisation of intangible assets, impairments and